by Ronni Dee

Created on: January 28, 2009

In 1978 the Fair Debt Collection Practices Act, or FDCPA, was passed by Congress due to an overwhelming amount of complaints related to collection agencies. Each state in the U.S. has adopted different laws similar to the FDCPA, many of which broaden what debt collectors are bound by under the act.

All states have to follow the minimum guidelines when it comes to debt collection laws. The country wide FDCPA covers most types of debts including vehicle purchase loans, medical bills, mortgages, credit cards, and retail financing.

Under the FDCPA the following actions are prohibited:

-
Contacting you at any time outside of the hours between 8 a.m. and 9 p.m.

-
Threatening you in any way, including threats of supplying false information to your credit report.

-
Representing himself or herself as an attorney or law enforcement official when they do not hold such credentials.

-
Contacting customers known to be in bankruptcy or known to have attorney representation.

-
After a consumer notifies the company in writing that they want all communications to cease immediately, and they refuse to pay the debt, a collection company is no longer allowed to contact that person. This part holds some exceptions, such as contacting your attorney. They are often permitted to contact you one last time to offer one last chance to settle the debt, or to inform you that your request was received and they will cease communication. This type of letter is often referred to a cease and desist letter'.

-
Publishing a consumers name on any public list of bad debts owed to the company.

-
Threatening to have the consumer arrested or threatening to pursue legal action when there is no reason under law that they could. For example: A debt collector cannot threaten you with fines or imprisonment because a debt collector cannot truly' issue these things.

-
Contacting you at a place or time that you have previously explained was inconvenient is prohibited.

-
Debt Collectors are prohibited from using obscenities, racial slurs, or verbally attacking the consumer with insults.

-
They cannot file any course of legal action that is far from your place of residence.

-
They cannot use false information in an effort to get any type of information from you.

-
They are not permitted to contact a third party without your consent. This includes relatives, neighbors, or employers. In some cases one phone call will be allotted in an effort to find your personal contact information, but they are not allowed to disclose that

• 1
• 2
• Next Page >>