Purpose of the Law

The Fair Debt Collection Practices Act was passed after a wave of consumer complaint about the manner in which debt collectors behaved and the lack of consumer ability to dispute debt and harassment. The law specifically outlines what a debt collector may and may not do and what rights a consumer has to be free of inappropriate harassment, to receive all information about a debt, and to dispute a debt that is erroneous. A debt collector is broadly defined in this law, so that the original creditor, as well as anyone contracted by the original creditor to collect the debt, is subject to the law.

What Debt Collectors Cannot Do

There is a long list of prohibited conduct under this law, the most important being the following:

1. Collectors may not call you before 8:00 a.m. or after 9:00 p.m.
2. Collectors may not contact a debtor if the debtor has requested in writing that they stop doing so. This does not protect the debtor from legal action, but will stop the telephone calls.
3. Collectors may not contact a debtor at work if the debtor has orally told them not to do so.
4. Collectors may not contact a debtor if the debtor has secured an attorney’s services and given the collector the attorney’s name.
5. Collectors may not threaten lawsuits if there is not real plan to sue
6. Collectors may not publish the debtor’s name on any list nor may the collector discuss the debt with third parties, particularly relatives who may answer the phone.
7. Collectors may not be abusive or threatening, and may not use vulgar language
8. Collectors must inform the debtor, in writing, of the nature and amount of the debt and provide the debtor with the means to dispute the debt.
9. Collectors must respond to any dispute within 30 days of receipt
10. Collectors must notify the debtor when and if legal action will ensue.
11. Debtors have the right to sue if a collector violates any provisions of the law.

Enforcement

Because this is a federal law, it is enforced by the Federal Trade Commission. Many consumer groups argue that the FTC does not take a strong enough stand when abuses are pointed out. As expected, collection agencies and the creditors they represent argue that the FTC allows frivolous lawsuits against them. Each year, the FTC provides a report to Congress on the status of its enforcement procedures, and the original law has been amended as reports point out issues to be addressed.