August 3, 2008

Fair Debt Collection Practices Act in a Nutshell

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 […]