Five Facts About The FDCPA - Morrison Law Group (2024)

FAQs

Why is the FDCPA important? ›

The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts from you.

The Fair Debt Collection Practices Act (FDCPA) (15 USC 1692 et seq.), which became effective in March 1978, was designed to eliminate abusive, deceptive, and unfair debt collection practices.

1. Harassment and Abusive Language. Among the most common FDCPA violations, harassment sits as one of the worst. Debt collectors may employ aggressive tactics in the hopes that you will become afraid and agree to pay the debt, just to end the abuse.

Debt collectors are not allowed to threaten bodily harm or arrest, and are prohibited from using profane or obscene language. Debt collectors are not allowed to use abusive, unfair, or deceptive practices in order to collect debts.

Statutory Damages of $1,000

Because the FDCPA says that the consumer can recover "up to $1,000," the amount awarded could be less. The court can award these damages if the consumer proves the collector violated the FDCPA, but the consumer does not have to prove that the violation caused any harm.

The FDCPA gives consumers a private right of action to pursue civil litigation for the violations listed above (among others). In private right of action cases under the FDCPA, consumers can seek either actual damages or statutory damages of up to $1,000 per violation, plus recovery of their attorneys' fees and costs.

The Bureau and the FTC share authority to enforce the FDCPA, and the two agencies work closely together to coordinate our respective debt collection efforts.

Generally, a collection agency can't engage in conduct meant to harass, oppress, or abuse. Specifically, it can't: use or threaten to use violence or other criminal means to harm you, another person, or your or another person's reputation or property. use obscene, profane, or abusive language.

5294 - 95th Congress (1977-1978): Fair Debt Collection Practices Act | Congress.gov | Library of Congress.

Also, debts that are associated with a fiduciary relationship or with escrow receive no FDCPA protection. Debts of this nature include debt owed for mortgage escrow or debt owed in a trust.

What is the new FDCPA rule? ›

On November 30, 2021, Reg F officially superseded any previous rules found in the Fair Debt Collections Practices Act (FDCPA). What types of communication does Regulation F apply to? Regulation F includes policies for communications by phone call, voicemail, regular mail, email, text and SMS text.

The FDCPA is a strict liability statute - Hartman v. Meridian Fin.

– (1) amount of the debt; – (2) name of the creditor to whom the debt is owed; – (3) statement that debt presumed valid unless debtor disputes in 30 days; – (4) a statement that if debtor disputes the debt in writing in 30 days, collector will obtain verification of the debt and mail it to consumer; – (5) a statement ...

If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.

What Does the FDCPA Do? Restricts debt collectors to contacting you from only 8 a.m. to 9 p.m. What Does the FDCPA Prevent Debt Collectors From Doing? Prohibits obscene or profane language and the use of all threats of violence and harm via all methods of communication (telephone, mail, etc.)

Debt collectors and collection agencies serve a legitimate purpose by helping creditors recover at least a portion of money they are owed. Debt collection practices are governed by both federal and state consumer protection laws, and legitimate debt collectors will abide by them. Federal Trade Commission.

The benefits of a debt management program can be substantial. In addition to potentially reducing interest rates and monthly obligations, it can also halt collection calls and late fees. Successful completion of the plan can also help rebuild your credit over time.