One of the most important drawbacks of a debt settlement program is that calls from creditors and collection companies will persist while the client is in the debt settlement program.Debt settlement happens when the clients stop paying their creditors directly. Most debt settlement companies suggest their clients to cease communication with creditors. However, collection companies and creditors keep calling and “harassing” debt settlement clients and often tell them how “bad” a debt settlement program is in order to keep collecting debts, and creditors usually don’t stop calling until they are paid, getting payments, or forced to stop calling by some legal mechanism.Let us understand FDCPA (Fair Debt Practices Collection Act), before we proceed further.The Fair Debt Collection Practices Act is an Act which creates guidelines under which debt collectors may conduct business, defines rights of consumers involved with debt collectors, and prescribes penalties and remedies for violations of the Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information’s accuracy.FDCPA has certain guidelines for collections companies. The collection companies are […]
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In the United States, in order to lessen the hassle and problem related to debt collection, the legislature enacted the Fair Debt Collection Practices Act.
What is Fair Debt Collection Practices Act?
Fair Debt Collection Practices Act is a U.S statute added in 1978 to the Consumer Credit Protection Act. Its purpose is:
0 To eliminate abusive practices in the collection of consumer debts
0 To promote fair debt collection
0 To provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information0s accuracy
Who are covered by the Act?
The following are the individual covered by Fair Debt Collection Practices Act:
0 Third party debt collectors
0 Debt buyers
What are the prohibited acts under Fair Debt Collection Practices Act?
The Act prohibits certain deceptive and abusive acts when collecting debts including the following:
0 Hours for phone contact. Calls between 8:00 am 0 9:00 pm are prohibited.
0 Contact after being ask to stop. This refers to contacting costumer after the latter serve a notice that he refuses to pay the debts.
0 Causing the telephone to ring or engaging other person in telephone conversation repeatedly or continuously
0 Contacting consumers at their place of employment after having been advised in writing that this is not acceptable
0 Contacting consumer known to be represented by an […]
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