Fair Debt Collection Practices Act Summary

For those not familiar, The Fair Debt Collection Practices Act (FDCPA) basically offers protection against any illegal and unethical debt recovery tactics. The laws enlisted under The Fair Debt Collection Practices Act help the consumers to understand their rights better and also learn how to manage their illegal and unethical debt recovery situations.

The FDCPA are a set of laws and guidelines, regulated by the Federal Trade Commission (FTC) for both debtors as well as the debt collectors. It clearly states what the debt collectors and debtors can do and also what they cannot do. It is actually a guideline for states laws for the legal issues and professionals such as attorneys. Though many states have their distinct set of rules and regulations when it comes to debt collection, the rules of this act are more or less uniformly applicable through out the United States of America. However most of the state laws are quite similar to that of The Fair Debt Collection Practices Act.

In case you are wondering, which matters these laws are likely to be applicable, the FDCPA actually applies to family, personal, and household debts, which also include aspects like medical care, automobile debt, first and second mortgages, credit card debts and retail financing. Most of the states which have their own laws regarding debt collection have similar laws as that of the FDCPA. The Fair Debt Collection Practices Act helps consumers in becoming aware of our rights and the misconduct that are sometimes a part of debt collection agencies' strategies.

The code of conduct to be maintained by the debt collectors as well as the lawyers and solicitors are listed in The Fair Debt Collection Practices Act. Some of the laws are stated hereunder:

• Any kind of threat given to the consumer for delinquencies and at the same time threatening to lower down the credit rating and repossession without actually taking any legal steps. You as a consumer should be aware that a debt collector may warn you about the legal steps to impending debt collection but the agency cannot give a false threat to anyone.

• A debt collector cannot call the debtor’s relatives, neighbors, or any other person known to him. Although the debt collector has the right to call on the co- applicant of the debt.

• The debt collector cannot call up a debtor at unreasonable hours or cannot make repeated calls to him, if asked to desist in writing. The debt collector has to call up the debtor between 8:00 am and 9:00pm. In case the debtor himself permits the collector any other time other than the specified, then he may utilize that time.

• The debtor cannot place any calls at inconvenient places like the debtor's workplace, unless permission is given otherwise. In case the debtor has requested from not calling at a particular place, then such wishes should be respected.

• Using racial slurs, obscenity or insults is strictly prohibited by law.

There are various other regulations that should be maintained about which we should be aware. The Fair Debt Collection Practices Act makes it easier for most debtors to pay off their debts while restricting the debt collectors from doing anything insulting or unethical.