What is the purpose of the federal Fair Debt Collection Practices Act (FDCPA)?
The Fair Debt Collection Practices Act (FDCPA) is a federal law that serves to protect consumers from unfair and deceptive practices from debt collectors. The Act was passed in 1978 by Congress with the purpose of ending abusive and unfair debt collection practices. The FDCPA applies to “debt collectors,” which are defined as companies that regularly collect loans, debts, and other charges on behalf of lenders or creditors. The FDCPA prohibits certain practices that debt collectors may not use in an effort to collect a debt. This means that debt collectors may not harass, oppress, intimidate, or abuse any person whether in person, by phone, by mail, or electronically. Additionally, the FDCPA prohibits debt collectors from using false, deceptive, or misleading representations when attempting to collect a debt. This includes statements that directly or indirectly threaten to take any action against the consumer that cannot legally be taken. The FDCPA also requires debt collectors to provide written notice to consumers when attempting to collect a debt. This notice must include the amount of debt, the creditor, and any instructions for disputing or verifying the debt. Finally, debt collectors must adhere to a strict timetable for communications with consumers. The FDCPA requires communication only between 8am and 9pm local time and limits the amount of contact between debt collectors and consumers to a “reasonable” number of times. In short, the purpose of the Fair Debt Collection Practices Act (FDCPA) is to protect consumers from unfair and deceptive practices from debt collectors and ensure that debt collectors are using fair and legal practices when attempting to collect a debt.
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