UNDERSTANDING THE FAIR
DEBT COLLECTION PRACTICES ACT
So you've been reading this site for a while perhaps but still
don't fully understand the FDCPA
or how it actually protects you. This section will cover
the Act and interpretations of it by the Federal Trade Commission
along with our own to help you better understand how to use
it. The FDCPA was enacted in 1977
Why do we need
the FDCPA?
Because it's obvious there is abuse, harassment and coercion
in the business of collecting debts. Without this Act, collection
agencies could literally drive you to financial and mental
ruin. Here is the purpose:
§
802. Congressional findings and declarations of purpose [15
USC 1692]
(a) There is abundant evidence of the use of abusive, deceptive,
and unfair debt collection practices by many debt collectors.
Abusive debt collection practices contribute to the number
of personal bankruptcies, to marital instability, to the loss
of jobs, and to invasions of individual privacy.
(b) Existing laws
and procedures for redressing these injuries are inadequate
to protect consumers.
(c) Means other than
misrepresentation or other abusive debt collection practices
are available for the effective collection of debts.
(d) Abusive debt
collection practices are carried on to a substantial extent
in interstate commerce and through means and instrumentalities
of such commerce. Even where abusive debt collection practices
are purely intrastate in character, they nevertheless directly
affect interstate commerce.
(e) It is the purpose
of this title to eliminate abusive debt collection practices
by debt collectors, to insure that those debt collectors who
refrain from using abusive debt collection practices are not
competitively disadvantaged, and to promote consistent State
action to protect consumers against debt collection abuses.
Who is covered
by the FDCPA
Third party debt
collectors are generally covered by the Act. Anyone who
regularly attempts to collect debts in the course of their
business is a debt collector. Generally, the FDCPA
applies only to "debt collectors." The core portion
of the FDCPA's Section 803(6), 15 U.S.C. § 1692a(6),
defines "debt collector" as any person who uses
any instrumentality of interstate commerce or the mails in
any business the principal purpose of which is the collection
of any debts, or who regularly collects or attempts to collect,
directly or indirectly, debts owed or due or asserted to be
owed or due another.
The Act does not cover original creditors
(be sure to check your own state
law because there are exceptions). However some creditors
are now employing third party debt collectors before the debt
is actually charged off in hopes to escape the FDCPA. This
doesn't work however according
to the Commission's view.
Remainder of article is in the Member
Area
We offer a lot of free articles in our Credit
Library but the rest of this article and other FAQ about
the FDCPA is for Members
only. If you would like to gain access to more information
along with our credit repair and debt validation ebook and
sample letters, please visit our page about Site
Access.
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