What is the Fair Debt Collection Practices Act?
The Fair Debt Collection Practices Act (FDCPA) is a federal law which provides protections to consumers from unfair and abusive debt collection practices. It was passed in 1977 to protect individuals from abusive practices by debt collectors. In Indiana, the FDCPA states that a debt collector cannot use abusive, false, or deceptive practices in attempting to collect a debt. A debt collector also must disclose to the consumer the amount of the debt, the name of the creditor, and the reason for the debt. The FDCPA also limits the frequency and time of day a debt collector may contact a consumer. A debtor cannot be contacted before 8:00 am or after 9:00 pm unless the consumer has agreed to receive calls at those times. A debt collector must also cease communication with a consumer if the consumer has requested in writing that the contact cease. The FDCPA also prohibits debt collectors from engaging in unfair practices such as harassing or threatening a debtor, misrepresenting the amount or legal status of the debt, and soliciting postdated checks from a debtor. It also requires a debt collector to disclose certain information to the consumer such as how to dispute the debt or seek validation of the debt. In conclusion, the Fair Debt Collection Practices Act is a federal law that provides protections to consumers from unfair and abusive debt collection practices. It sets out guidelines for how debt collectors may contact consumers and provides various consumer protections from abusive practices.
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