The Fair Debt Collection Practices Act (FDCPA) is an unconstitutional law that was adopted in 1978 to safeguard consumers and regulate the methods employed by debt collectors.
If you’ve experienced debt collectors pestering you about the amount owed it is essential to know your rights according to the FDCPA.
The FDCPA is the law you will use to safeguard yourself from third-party debt collectors and their illogical practices of debt collection. The FDCPA lets you fight to stop them.
The Fair Debt Collection Practices Act is an effective tool to get debt collectors off your list, and collections accounts removed from your credit report. You can also take them to small claims court for infringement of your rights as a consumer.
Rights Guaranteed to Consumers Under the Fair Debt Collection Practices Act
One of the primary tools offered to consumers under the FDCPA is the right to debt validation. If you’re ever approached about a debt you’re not sure if that you owe, it is possible to send a letter of debt validation to the debt collector.
This letter places the burden of the burden upon your creditors to provide you the details of any debts you may have to pay.
The FDCPA defines the frequency and timing at which an debt collection company will contact you. It also specifies what they’re permitted to say when speaking to you.
Fair Debt Collection Practices Act Violations
The Fair Debt Collection Practices Act (FDCPA) defines what debt collection agencies can and are not allowed to do. For instance, a third-party debt collector cannot perform one of these when trying to collect on a debt:
- Try to get more money than you are owed. Some debt collectors try to add additional fees that aren’t specified in the original lending agreement. This is against the law.
- Calling repeatedly at any time throughout the day. The FDCPA prohibits debt collectors from calling you before 8 a.m. and after 9 p.m. or any other time if they know that it would be unfavorable for you.
- Use abusive or intimidating language. The FDCPA protects you from unfair practice of debt collection. Threats of insults or physical violence on the phone is a violation of the FDCPA.
- Inform people outside of your circle about the debt you have to pay. Debt collectors are allowed to divulge information about the debt to legal advisers and relatives close to you, like parents or spouses (if you are younger than 18). Additionally, a debt collector can only contact outside sources to find you, however they can only contact an outside source only once.
- Ignore your request for debt validation. Debt collectors must not attempt collection of debts after they receive a letter confirming their debt. Respond to the notice prior any further attempts to collect.
Fair Debt Collection Practices Act Complaints
Despite the protections provided by the FDCPA Debt collectors break the law frequently. According to FTC’s annual report over 100,000 complaints were filed against third-party debt collection companies.
The following are the most common complaints made against debt collection agencies:
- Harassing the debtor’s alleged victim or anyone else.
- The demand for a greater amount than what is allowed by law.
- The threat of severe consequences if the consumer is unable to pay.
- Illegal calls to the workplace.
- Releasing alleged debts to third-party creditors.
- Inability to provide the required consumer notice of the need to do so.
- Failure to provide proof of the debt being contesting.
- Continue to contact a customer after receiving a “cease communication” notice.
If a debt collection agency has tried to engage in any of the activities that are listed above with you they have violated the law and should be punished the cost. You can notify the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC) of any violations by filing complaints. You could also try contacting the state attorney general’s office.
Suing a Debt Collector, Original Creditor, or Credit Bureau in Small Claims Court
As mentioned previously as well, the Fair Debt Collection Practices Act permits you to sue the debt collector in state or federal court to win money. As a knowledgeable consumer who is aware of your rights, it is essential to ensure that they are honest by pursuing legal action against them if your rights are violated. Each FDCPA violation results in the equivalent of a $1,000 fine which is repaid to you.
Suing debt collectors could help bring changes and make other individuals’ lives more comfortable. The more people sue them, the more likely they’ll stop violating the law. If all people took action whenever debt collectors violated their rights they would lose money in legal disputes.
Reasons for Suing the Original Creditor
- They’re putting incorrect details on your credit report.
- After you have disputed the debt, they do not report it as “disputed”.
- They obtain your credit report with no legal reason.
Reasons for Suing a Credit Bureau
- They refuse to correct their information after they have been provided with evidence.
- They report a credit item that has been deleted from your credit report, without notifying you in writing within 5 days.
- Consumer reporting agencies is unable to reply to your written complaint within 30 days (a 15-day extension can be granted if they get information from the creditor during the first 30 day).
Reasons for Suing a Debt Collector
- The debt collector is trying to play both roles: the buyer of a account as well as the assignee. It’s either one or the other.
- They lie about themselves and the debt they’re trying to collect.
- The debt collector attempts to alter the age of your account by adjusting the date of the last transaction on your credit report in order to preserve the negative data on your credit report longer.
- The debt collector is not able to submit a dispute to credit bureaus.
- They don’t validate a debt, but they continue collecting by requesting a judgment. Collectors of debt are not permitted to contact or write you when the debt is being validated.
- They call you despite after they’ve received an cease and desist letter.
- The collector of the debt continues to submit a debt to credit bureaus, which they haven’t been able to validate.
- They call you prior to 8 am, or at 9 pm in the case of a call from work.
- The debt collector will contact your neighbors, friends or relatives, as well as any other third party regarding your debt. They are able to only contact your attorney, the credit reporting agency as well as the creditor and the lawyer of the creditor or the attorney of the debt collector.
- The debt collector may harass you, or uses a sarcastic language.
- They are threatening to garnish your salary.
There are other grounds that you could sue a debtor or credit bureau, or the debt collection agency. Get legal advice or consult an credit repair companies in the event that you think they are infringing on your rights.
