FDCPA: The Fair Debt Collection Practices Act Explained
Another key credit law. Beyond sending letters and making phone calls (and suing you in court) , there’s little a collection agency can do to collect a debt from you . And since collection agencies only get paid on the amounts collected, they have been known to sometimes use illegal methods of debt collection.
The Fair Debt Collection Practices Act (FDCPA) governs the procedures used by debt collection agencies to collect debts. It was enacted to prevent debt collectors from using unfair, unreasonable or illegitimate methods of debt collection.
Under the FDCPA, if a debt collector attempts to use an illegal approach to debt collection, they may be liable for punitive damages. Below is a list of the five most common FDCPA statements violated by collection agencies. Remember, there’s not a whole lot they can do to collect from you, so it’s important that you know what collection agencies cannot do:
1.A collection agency representative should not lead you to believe in any manner that he is a law enforcement officer or a representative of any government agency
2.A collection agency representative must not use or threaten force, violence, or other criminal means to harm you, your reputation, or your property
3.A collection agency representative must not communicate with other people (except your lawyer or a consumer reporting agency) about your account without your prior consent
4.A consumer reporting agency must not communicate with you at any unusual time or place that the collector should know would be inconvenient for you
5.A debt collector should not contact you at your place of employment if he knows or has reason to know that your employer prohibits such calls
Other sections of the FDCPA include the legal actions that can be taken by collection agencies, civil liabilities of the collector, and statute enforcement.
A debt collector once said, “…if people knew their legal rights, collection agencies might find it difficult to stay in business.” You should be aware if a collection agency is using illegal methods to try to collect from you.
The FDCPA was put into place to prohibit such activity. If you think you’re rights are being violated by a collection agency, you can learn more about the FDCPA by going to the Federal Trade Commission (www.ftc.gov) or by contact a credit repair specialist at My Credit Group.
