The United States Congress created the Fair Debt Collection Practices Act (commonly called the “FDCPA”) to eliminate abusive practices by debt collectors and provide consumers with a way to dispute inaccurate debt. This is one of the more significant laws to address abusive debt collectors. This law applies nationally, though many states also have similar laws.
The FDCPA provides guidelines for the way debt collectors may conduct business, defines the rights of consumers in debt collection situations, and provides for penalties and remedies for violations of the FDCPA by debt collectors.
The FDCPA prohibits “abusive and deceptive” conduct when attempts are made to collect a debt. In general terms, some of these abusive practices are as follows:
- Calling consumers before 8:00 a.m. or after 9:00 p.m.
- Contacting consumers after the consumer tells the debt collector in writing that he or she refuses to pay the alleged debt or asks that the debt collector not call about the debt.
- Engaging in conduct which is harassing, oppressive or abusive. The following conduct may violate this prohibition:
- Using or threatening a person with violence or threatening to harm a person’s reputation.
- Using obscene, profane or abusive language.
- Contacting a person by telephone repeatedly with the intent to annoy, abuse or harass the person.
- With certain exceptions, calling a consumer without disclosing the caller’s identity.
- Communicating with consumers at their place of work “if the debt collector knows or has reason to know that the consumer’s employer prohibits the consumer from receiving such communication” under certain circumstances.
- Communicating with a consumer or engaging in collection activities after a consumer disputes the debt or requests in writing, within a 30-day validation period, verification of a debt or the name and address of the original creditor, and before the verification or name and address of original creditor has been mailed to the consumer.
- Making false or misleading statements in connection with trying to collect a debt.
- The collection of any amount of money unless such amount is expressly authorized by the agreement creating the debt or otherwise permitted by law.
- Communicating with consumers’ friends, neighbors or relatives about the consumer’s debt.
- Communicating with consumer’s about a debt via post card.
The FDCPA requires certain conduct of debt collectors including:
- “Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing— (1) the amount of the debt; (2) the name of the creditor to whom the debt is owed; (3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector; (4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and (5) a statement that, upon the consumer’s written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.” FDCPA § 1692(g)(a).
- Disclose the name and address of the original creditor when the consumer requests it in writing within 30 days of receiving the notice.
- Provide verification of the debt or the name and address of the original creditor when the consumer requests such information in writing within the thirty-day period.