What is the Fair Debt Collections Practices Act?

   

Old woman on phone with debt collector.

     The Fair Debt Collection Practices Act (FDCPA)  out lines what a debt collector can and cannot do in order to collect on a debt. The law pertains to third party debt collectors like collections agencies, not original creditors. An original creditor is the credit card company that you currently owe, the debt collector is the one who purchases your delinquent accounts in hopes of collecting from you and making money. If these laws are violated by a debt collector they face fines and penalties.

 These are the rules the debt collectors must adhere to:

 1. Debt collectors cannot call you to collect at inconvenient times. The times that are generally considered acceptable are between 8 am and 9 pm. A debt collector may call outside these times only with permission from the debtor.

 2. A debt collector can call your place of employment to collect a debt, but if you tell them either verbally or in writing to stop calling your workplace, the debtor cannot call that number again. Also, if you request in writing for them not call your home they must stop calling.

 3. A debt collector can call relatives and associates, but he cannot divulge any information about the actual debt or that he is a debt collector. They can only contact third time parties one time each.

 4. A debt collector can only inform the debtor of the debt and request some form of payment.

 5. It is illegal for a debt collector to harass and threaten bodily harm or arrest. If the debt collector does not intend to sue in court it is illegal for them to say so.

It is also good to understand these terms:

debt- A debt is money that is owed.

debtor- A debtor is the one who owes money.

debt collector- A debt collector is the third party trying to collect a debt.

original creditor- An original creditor is where the debt originated.

Debt collectors have rules about when they can call.

Sources:
https://www.investopedia.com/terms/f/fair-debt-collection-practices-act-fdcpa.asp