Debt Settlement

A Review of Fair Debt Collections Law

The Fair Debt Collection Practices Act was added to the Consumer Protection Act in 1978. The statute was added to the Consumer Credit Protection Act in order to stop debt collectors from harassing consumers that they are attempting to collect money from. The act describes numerous acts that are illegal for debt collectors, as well as a list of requirements that they must follow. Consumers are given added protection under the Fair Debt Collections law as they are able to validate that the debt belongs to them, as well as dispute a debt that is charged to them.

The fair debt collection law attempts to put an end to behavior that is considered abusive and deceptive. There are many actions that are covered under the act, some of the actions that are covered include:

» Acceptable hours to contact a person by phone. Debt collectors can only contact consumers between the hours of 8:00 a.m. and 9:00 p.m. local time.

» Failure to stop communication upon request of consumer. Debt collectors who receive written notice that a consumer does not want to be contacted any more or refuses to pay the debt may not contact the person any more according to the fair debt collections law. An exception to the rule is for litigation being served to the consumer.

» Calling a house only to ring the phone or engaging a person in conversation over the phone repeatedly. Any behavior that is intended to annoy, abuse, or harass is prohibited in fair debt collection law.

» Debt collectors are not allowed to publish a consumers name or address on any list that is a collection of bad debts.

These are just some of the practices that are prohibited under the Fair Debt Collections Law. There are many more actions that are covered in great depth to prevent the abuse and deception of the consumer.

The act also sets Guidelines for Debt Collectors. The required conduct must be followed by all debt collectors when dealing with consumers. The guidelines are as follows:

♦ Debt collectors must identify themselves, and make the consumer aware in every conversation that they are a debt collector.

♦ Debt collectors must provide the name and address of the original creditor only after the consumer has filed a written request. This must be fulfilled within 30 days.

♦ Make consumers aware of their right to dispute a debt, either in full or part.

♦ Provide verification of the debt. If the consumer files a written request for verification the debt collectors must mail the consumer all relevant information, or stop collection efforts.

♦ If a debt collector files a lawsuit it must be where the consumer lives, or where the consumer signed the contract.

Again this is only an overview of the required conduct of all debt collectors. The Fair Debt Collections Act has many more items all debt collectors must follow. The Fair Debt Collection Practices Act of 1978 provides consumers in debt protection from debt collectors attempting to harass and deceive the consumer. It is a powerful and important statute added to the Consumer Credit Protection Act.

Laws & Other Articles