Debt Collection Regulations - What are your Rights?
Debt collection is a necessary part of doing business, but it can also be a highly sensitive area. When collectors are not following the rules, consumers are often left wondering what their rights are and what they can do about it.
The Fair Debt Collection Practices Act (FDCPA), which was passed by Congress in 1978, protects consumers from unfair or abusive debt collection practices by third-party debt collectors. The FDCPA applies to most creditors and debt buyers who collect debts on their own behalf or on behalf of another person or company. If you're being harassed or mistreated by a third-party debt collector (this includes text messages), here's what you should know:
What is The Fair Debt Collection Practices Act (FDCPA)?
The Fair Debt Collection Practices Act (FDCPA) is a law that was established in 1977. The purpose of this act is to protect consumers from abusive practices and unfair methods of debt collection by debt collectors.
The FDCPA prohibits debt collectors from using false, deceptive or misleading representations when they try to collect a debt. In addition, the FDCPA requires debt collectors to send consumers written notice of their right to dispute the validity of any debts within 30 days after receiving notice that a consumer has paid less than half of the balance due on an account or requested more information about it.
How does the FDCPA protect consumers?
The FDCPA protects consumers from debt collectors' unfair collection practices by requiring them to identify themselves as debt collectors, not call you before 8am or after 9pm, and not contact you at work if they know your employer doesn’t allow it.
If a debt collector violates these rules, he or she can be liable for damages of up to $1,000 per violation. But that’s just the tip of the iceberg when it comes to penalties under federal law: The FDCPA also allows you to seek legal action against any creditor who violates this law.
In addition to federal protections like those mentioned above, some states have their own laws regarding how long after a certain amount of time has passed (usually between two and ten years) before creditors can sue on an unpaid loan without having first sent out several notices about its existence and then offering an opportunity for you pay off what's owed with interest over time rather than all at once; these laws vary widely by state so check with yours if necessary!
Who enforces the FDCPA?
The FTC is the federal agency that enforces the FDCPA. Because it has limited resources, it relies heavily on consumers to report violations of the law. The FTC can sue debt collectors that violate the FDCPA, and award damages to consumers who have been harmed by a violation of their rights under the act.
What are Your Rights Under the FDCPA?
In addition to your rights under the FDCPA, you also have some additional legal rights that vary depending on what type of debt you owe.
You have the right to know who is collecting the debt. If a creditor or debt collector uses third-party collectors to collect their debts, then they are required by law (and common sense) not only to tell you who has been hired as a collector but also what information would be important for them to provide when contacting you about your account.
You have the right to know how much money is owed on each account and whether there is any late payment fees associated with those accounts as well as any other fees related directly or indirectly related thereto including bills like utility bills which may have already been paid off but still appear on our doorstep!
You have the right to know what kind of debt it is. If it is a credit card, you have the right to know what interest rate that account carries and how much money has been put toward paying down the debt.
You have the right to know how long the debt collect can contact you. Every state varies, so you should look up your state's specific guidelines.
Conclusion
The FDCPA is a federal law that protects consumers from unfair, improper debt collection practices. It prohibits debt collectors from using abusive, deceptive or unfair methods to collect debts from you. If you feel that a debt collector has violated any part of the FDCPA by calling you without identifying themselves properly, threatening violence against you or your family members, or making harassing calls at inconvenient times (such as while at work), then they could potentially be held accountable under this act.
