What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law passed in 1978 in order to protect consumers from predatory debt collection practices. The FDCPA covers all types of consumer debt such as credit cards, medical bills, auto loans, and student loans. It applies to debt collectors who have been hired by a creditor to collect a debt, as well as collection agencies. Under the FDCPA, debt collectors must use fair and reasonable collection techniques when attempting to collect a debt. This includes refraining from threats or using abusive language, and not harassing or calling the debtor frequently. Debt collectors are also legally required to provide certain information to debtors, such as the amount of debt owed and who the original creditor was. In addition to setting limits on debt collector behavior, the FDCPA also allows debtors to dispute a debt they believe to be inaccurate and take legal action against debt collectors for violating the act’s regulations. If debtors win in court, they can recover their court costs and get up to $1,000 in statutory damages. In South Carolina, the FDCPA applies to all consumer debt collectors who are not affiliated with the original creditor. This includes both third-party collectors and collection agencies. The FDCPA also applies to debt collectors operating outside of South Carolina who are attempting to collect on debts owed by South Carolina residents.

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What is the Fair Debt Collection Practices Act?

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