Practices in Fair Debt Collection Act

The Fair Debt Collection Practices Act (FDCPA) is a law that has been added to the Law on Protection of Consumer Credit by Congress in 1978. The FDCPA sets guidelines for debt collection practices to protect consumers from abuse, allowing the validation of the alleged debt, and guarantee the rights of consumers. The FDCPA regulates many different types of debt collectors, whether an agency,individual or a legal practitioner. As a producer or consumer, understand the rules contained in the FDCPA will help you decide the best way to approach a debt situation, if you are the debtor and the creditor or collector.

Practices prohibited by the FDCPA

The FDCPA prohibits debt collectors to pursue a course of conduct or practices deemed unfair or unethical. For example, debt collectors may contact the debtor during the"Normal", defined as the time from 8:00 to 9:00, unless permission to do otherwise by the debtor.

In general, the rights of consumers are heavily guarded by the FDCPA. According to the statute, the debtor can force a collection agency to refrain from further contact with a simple written notification. The only exceptions to this rule are the following: a) notify the consumer that collection efforts have ceased, and b) notify consumers of any other action, as a cause, thatcreditor intends to follow.

Other practices prohibited by this law include, but are not limited to:

Publication name or address of the consumer in a list of debtors

With abusive language,

How to contact third parties in connection with the debt (such as family, friends, neighbors, employers, etc.), and

Contact a consumer who is known to be represented by counsel.

Protocol required by the FDCPA

The FDCPA also requires debt collectorsprovide some information about themselves and the creditor they represent. Should be identified and the creditor, the name and address, to inform consumers of their right to dispute the debt, and provide validation of a debt in the event of a formal complaint.

The debate on the FDCPA

The process of debt collection is closely regulated and very technical. The provisions of the FDCPA are imposed by the Federal Commission. In addition, violations of the FDCPA also allow interested private citizens (s) to sue for damages up to $ 1.000, as well as damage caused by the breach.

Not everyone is happy with the FDCPA as it is, anyway. In fact, this law has been subject to criticism from consumer groups and industry representatives. In the first case, consumer advocates believe that the sanctions allowed by the FDCPA are not adequate deterrents to illegal collection Practices>, partly due to the fact that fines are not extended to inflation. Moreover, the collection industry complains that the rules of the FDCPA to promote long lawsuits, and heavy on minor technical details, and therefore prevents their ability and right to collect the debts valid legitimate.

For more information about the Fair Debt Collection Practices Act, or to learn more about managing> Of the debt as a debtor or creditor, business trips to the lawyers' s in Austin http://www.slaterandkennon.com Slater and Kennon.