Consumer Law: All You Need TO Know About The Fair Debt Collection Practices Act

Reports of debt collectors harassing consumers are on the rise. More and more consumers grumble about how tenacious debt collectors pester them over the phone even after the borrower sends them a Cease and Desist letter. In an attempt to recover mortgage payments, car payments and just about any money from a loan, banks and other lenders have adopted what can only be described as harassment tactics.

The government and consumer protection agencies have taken notice of these tendencies and given the consumer a shield against unsolicited calls from debt collectors. The Fair Debt Collection Practices Act, commonly known as the FDCP, details stringent guidelines on how far a debt collector can go while collecting a debt.

As a consumer, it is imperative you are aware of the rights the Act affords you, even if you did not default on your credit card or loan payments. There are reports of debtors trying to get consumers to pay a debt that they do not owe, which coincidentally, is the number one complaint against debt collectors.

The Act allows you to take the following actions if a debtor violates the provisions of the Act:

• File a claim against the collector with the Better Business Bureau: The Better Business Bureau helps people locate businesses and brands they can trust. Filing a complaint with them is an excellent way to expose the debt collector firm for unprofessionalism.

• Submit a complaint with your AG: The Attorney General in your state can take up your case, effectively putting an end to the unprofessional conduct on the part of the debt collector.

• File a civil against the debt collector in your state: You can file a civil suit against the collection agency for up to a thousand dollars, including the damages you claim.

• File a complaint with the Consumer Financial Protection Bureau: Report the debt collection agency to the CFPB, which has the power to stop the collector from harassing you.

You should gather as much evidence of harassment on the part of the collector before filing a complaint. Facts such as dates and time of calls, the business name of the collection agency and the name of the debt collector you spoke with must be presented to support your claim. You should also have specific details of the FDCP violation.

Here’s a list of violations cited under the Fair Debt Collection Practice Act:

• Debt Collector Asking For More Than You Owe

The Act stipulates that the collector cannot falsify the amount you owe. If the collector demanded you to pay more than you owe on your credit cards, report the debt collector. Debt collectors often result to deceptive tactics in a bid to scare you into paying the debt.

• Debt Collector Asks you To Pay Interest or Fees You Are Not Aware Of

The Act prohibits the collector from affixing extra amounts on your original debt, or fees not recognized in the original agreement.

• Persistent Calling

The Act considers persistent phone calls as harassment. If a debt collector calls you repeatedly, send him a Cease and Desist letter.

• Use of Abusive Language or Profanities

You should immediately seek legal redress if a debt collector becomes abusive. The Act considers such behavior as a form of harassment.

• Calling Before 8 in the Morning or After 9 at Night

Calls during these times, according to the Act, are considered harassment. These times are not acceptable periods for conducting business.

• Calling You at Work

If a collector calls you at a time he knows you are working or some other inconvenient time, this amounts to harassment and should be reported to the authorities.

• Use of Violence or Threats of Violence

If a collector threatens or uses force, the consumer law mandates you take action.