The Fair Debt Collection Practices Act (“FDCPA”) is a federal law that protects individuals from harassing, abusive and deceptive debt collection practices from third-party agencies (known as “debt collectors”) seeking to collect money owed on behalf of the original creditor. This law provides you with certain essential rights and protections against these unlawful practices as well as remedies for any violations.
Continue reading to learn how the FDCPA can protect you and the steps you can undertake if your rights have been infringed upon.
What Protections are Provided by the FDCPA?
State and federal laws have been passed that restrict debt collectors from taking certain actions when collecting a debt. The FDCPA is a comprehensive law that protects individuals against a variety of unethical and intrusive behavior engaged in by certain debt collection agencies. This federal law provides several protections and remedies that can help you if a debt collector is using coercive, or otherwise unlawful means, to collect any money you may owe.
The FDCPA protects you by:
- Setting Limits on when and how often a company can contact you for the payment of a debt. Debt collectors can only contact you between 8:00 AM and 9:00 PM unless you give them permission otherwise.
- Prohibiting debt collectors from harassing and abusive behavior. This includes not calling your place of employment or leaving excessive voicemails.
- Requiring debt collectors to disclose specific information and follow certain rules when sending a written notice of debt. They are required to provide a validation notice within 5 days of first contact that contains the amount of debt, the original creditor and how to make payment. A debt collector must also provide proof that you owe the money.
- Restricting what a debt collection company can say to a friend, relative (excluding spouse), etc. when trying to locate you. For instance, they cannot indicate that they are a debt collection agency or make any reference to your debt.
- Restricting direct contact from debt collectors in certain instances. A debt collection agency is prohibited from contacting you if you inform them you are being represented by an attorney or have sent a cease and desist letter.
- Providing restrictions on electronic contact. While debt collectors can contact you electronically and online, they must do so privately, identify themselves as a debt collector and provide a way to opt out of these types of communication.
- Prohibiting the publicizing of your debt. This restriction includes listing your name in any public way that identifies you as owing money and even visiting your place of employment.
Beyond these specific examples, the FDCPA requires debt collectors to refrain from any type of harassing and abusive behavior. The type of behavior that can violate the FDCPA can include anything from excessive calls, profanity or even threats.
Debt collection agencies may not engage in any type of deceptive behavior during their collection efforts. This may include anything from trying to collect more than you owe (e.g., fees, unauthorized interest charges, etc.) or making false statements to coerce you to make a payment.
What Types of Debts Are Covered Under the FDCPA?
The FDCPA provides protections from the practices of debt collection agencies for consumer debts, not business debts. Some examples of consumer debts that are covered under this law include the following:
- Mortgages
- Vehicle Loans
- Student Loans
- Credit Cards
- Medical Bills
- Past Due Rent
What Should You Do If Your Rights Were Violated Under the FDCPA?
If you are on the receiving end of harassing calls, letters or other types of violations under the FDCPA, make sure that you keep detailed records. That means saving all letters, voicemails or any other documentation of a potential violation. You should also take detailed notes of these violations if you plan to take action against the debt collector.
The FDCPA provides certain options for reporting a violation. If you are looking to take action against a debt collector, you have the following options:
- File a lawsuit against the debt collection agency under the FDCPA for damages (and attorney fees)
- Submit a complaint with the Federal Trade Commission
- Submit a complaint with the Consumer Financial Protection Bureau
- Contact Your State’s Attorney General in case the debt collector is in violation of other laws
If you plan to file a legal claim under the FDCPA, you need to prove that a debt collector engaged in unlawful collection practices. That means you must provide evidence of an intentional violation of the FDCPA on the part of the debt collector. Evidence may include several repetitive letters, harassing voicemails or the testimony of others contacted by the debt collector.
It’s important to know that there is a statute of limitations on lawsuits brought under the FDCPA. If you plan to file a lawsuit, you must do so within one year from when the violation of the FDCPA occurred.
A lawsuit under the FDCPA can also provide you with other indirect benefits. For instance, a collection agency may be willing to settle a valid debt at a fraction of the price if you have a strong case under the FDCPA.
Do You Have a Potential Claim under the FDCPA?
The FDCPA has its limitations. The scope of the law only covers third-party companies referred to as debt collectors. It also does not restrict the actions of the original creditor you incurred the debt with. There are many other nuances to this law that can sometimes be complex to navigate.
Borrowers are obligated to pay a rightful debt. However, owing money does not give unscrupulous debt collection agencies the right to abuse and harass you. If you think you have a potential claim, you may benefit from contacting an attorney that specializes in this area of law. They can assist you with evaluating your situation and advise you on the next steps to take.