What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law passed by the United States Congress in 1977. This law regulates the actions of debt collectors and prohibits them from engaging in unfair, abusive, or deceptive practices when collecting a debt. This law applies to any person or entity that regularly collects debts on behalf of another person, company, or organization. The FDCPA places limits on how debt collectors can communicate with debtors. It requires them to clearly identify themselves and the debt they are attempting to collect. It also requires them to be transparent in their communication and refrain from harassing debtors. It also prohibits debt collectors from engaging in activities that are deceptive or oppressive, such as making false statements regarding the debt, impersonating government officials, or using the threat of legal action to collect a debt. In North Carolina, debt collectors must follow FDCPA regulations in addition to state and local laws. If a debt collector has violated the FDCPA, a debtor can file a lawsuit against the debt collector in federal court. Debtors can also file a complaint with the Federal Trade Commission and the Consumer Financial Protection Bureau. Debtors may be entitled to damages and legal costs if they successfully prove that the debt collector violated the FDCPA.

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What is the Fair Debt Collection Practices Act?

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