What are the federal laws governing debt collection?

Debt collectors in the United States are regulated in their activities by the federal Fair Debt Collection Practices Act (FDCPA). This law was enacted in 1977 in order to protect consumers from abusive debt collection practices. The FDCPA applies to all debt collectors (including collection agencies and lawyers) who seek to collect debts that have originated from personal, family, or household transactions. The FDCPA prohibits debt collectors from engaging in a number of activities such as contacting consumers before 8 a.m. or after 9 p.m., or without disclosing their identity; using unfair, deceptive, or harassing practices when attempting to collect a debt; making false or misleading statements regarding a debt; and using obscene or profane language. The law also provides consumers with certain rights. For instance, consumers have the right to request that a debt collector stop contacting them by sending a letter indicating this request. Once a letter is sent, the debt collector must cease all contact with the consumer unless they respond with a written statement or court order that indicates they are willing to continue communication. The FDCPA also grants consumers the right to sue debt collectors who have violated the provisions of the law. Consumers are entitled to receive actual damages, punitive damages, and attorney’s fees as a result of the lawsuit. Additionally, the state of North Carolina has its own set of laws that apply to debt collection. Consumers should familiarize themselves with these laws before engaging with a debt collector.

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What are the federal laws governing debt collection?

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