|
Laws > FDCPA (1) THE FAIR DEBT COLLECTIONS PRACTICES ACT ("FDCPA") Knowing the rules will help you play the collection game. You are protected by The Fair Debt Collection Practices Act, which is the federal law that protects consumers from harassment and abusive collection practices. The Fair Debt Collection Practices Act applies to collection efforts that are employed by persons other than the original creditor “that regularly collect debts owed to others.” The FDCPA applies to third party collectors who have purchased accounts or been hired by an “original creditor” to collect on a debt. Original credit institutions are not required to abide by the provisions set forth by the act. Understanding the Fair Debt Collection Practices Act and letting the creditors know that you understand your rights is often one of the most effective ways of dealing with collectors and their threats. When a debt collector calls When a collector contacts you, at some point in the conversation they must advise you that they are calling from a collection agency. They are required to identify the name of the original creditor and the amount of the balance on the account that is being collected upon. This is important because it allows you to determine whether it is a bill on which you feel you are responsible for paying or on which you have a dispute. If the collector was not required to advise you of the balance and original creditor, you might pay on a bill that you are not legally responsible for or you might pay more than you are legally required to. The collector must advise you that the purpose of of the call is for collecting a debt and that the information provided by you will be used for the purpose collecting a debt. The collector is also required to advise you that you have the right to dispute the debt within 30 days. |