What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that sets the standards for debt collectors in Washington and across the nation. It was established in 1977 to protect consumers from unfair and abusive collection practices. The law applies to both companies and individuals who are debt collectors and who are trying to collect personal debts from consumers such as credit cards and medical bills. Under the FDCPA, debt collectors are not allowed to use harassment tactics, false statements, or attempting to collect more than what is legally owed. They are also prohibited from disclosing the debt to any third party, and they may not threaten any legal action unless they intend to actually follow through. They must inform the consumer of their right to dispute the debt and request validation, and they must stop contacting the consumer if the debt is disputed in writing. The FDCPA does not waive the debt or prevent a lawsuit from the original creditor. However, if a debt collector has violated any of the provisions of the FDCPA, the consumer may be able to take legal action against them. This can include recovering lost wages, reimbursement for attorney fees, and up to $1,000 in statutory damages. It is important for both debt collectors and consumers to be aware of the provisions of the FDCPA and to adhere to its requirements.

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What is the Fair Debt Collection Practices Act?

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