What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that was enacted in 1977 to protect consumers from aggressive and abusive debt collectors. It is enforced by the Federal Trade Commission and applies to all states, including North Carolina. The FDCPA sets out a code of conduct for debt collectors, specifying how a debt collector may contact a debtor and how a debtor may cease contact from a debt collector. The FDCPA prohibits debt collectors from using deceptive, unfair, or abusive practices when collecting a debt. For example, they are not allowed to threaten or harass a debtor, make false statements, use profanity, or call at an unreasonable hour. They must also disclose that they are a debt collector and any information they provide should be accurate. The FDCPA also requires debt collectors to provide debtors with certain information concerning their debt, including a detailed validation notice containing the amount of the debt, the name of the creditor, and their rights. Debtors who feel that a debt collector has violated the FDCPA may file a complaint with the Federal Trade Commission or take the collector to court. If they are successful, they may be entitled to damages, attorney’s fees, and court costs. The FDCPA also allows states to pass laws that provide debtors with greater protection than the federal law.

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What is the Fair Debt Collection Practices Act?

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