Fair Debt Collection Practices Act

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Fair Debt Collection Practices Act

A federal law designed to curb abuses in the debt collection industry. The law applies to debt collectors, who are defined as persons or companies who collect debts for another. If you owe money to Smith's Marina and Mr. Smith himself or one of his employees contacts you to collect the money owed, that person is not a debt collector under the Act because they are trying to collect money due to themselves, not money due to a third party.

Generally speaking, collectors cannot call you before 8 a.m. or after 9 p.m.They can't threaten you with arrest,bodily harm,or public exposure as a “deadbeat.”They can't imply they are connected with law enforcement.Collectors cannot harass you with repeated phone calls on the same day.They can't call you at work if you tell them you are not allowed to receive such calls at work.

Consumers may sue and collect damages and attorneys'fees for violations of the Fair Debt Collection Practices Act. (It may be found at 15 USC §1601 and subsequent sections.) You must file suit within one year of the violation.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
References in periodicals archive ?
The rules also affect certain requirements under the Fair Debt Collection Act. In conjunction with the new rules, the CFPB released an interpretive rule under the Fair Debt Collection Practices Act relating to servicers' compliance with certain mortgage servicing rules.
He said the Fair Debt Collection Act punishes the method of the collection.
That means payments would fall under the federal Fair Debt Collection Act, which hasn't been the case in the past, he said.
The targets are threatened with criminal arrest and prosecution, and even deportation, unless they immediately wire funds via MoneyGram to the "Law Firm." A check determined that the real business is not a licensed debt collector; and even if it were, it is clearly violating both the federal and state Fair Debt Collection Act provisions.
Under the Fair Debt Collection Act, the collector must send you a written notice that states how much you owe, the name of the creditor and what action to take if you dispute the claim.
The 31-page request for comment outlines a plan for risk management and all of the consumer protection regulations that credit unions would have to consider as part of any social media effort, including Truth in Savings, Truth in Lending, the Real Estate Settlement Procedures Act and the Fair Debt Collection Act. The list literally goes on and on.