Source: https://www.credit.com/credit-law/fair-debt-collection-practices-act/
Timestamp: 2019-04-23 15:50:08+00:00

Document:
Whether you had a lot of bills pile up at once, or you simply forgot about a bill that was due, your account(s) ended up in collections. And if that’s happened, you are probably all too familiar with phone calls and notices coming from a collection agency or debt collector. No one likes having that happen — after all, you’re already stressed out enough trying to repay what you owe.
While you still need to pay the debt back in most situations, you do have rights that protect you from being harassed or threatened by anyone looking to get you to pay up. So, if you feel a debt collector is crossing the line, here’s what you need to know.
The Fair Debt Collection Practices Act (FDCPA) was approved by Congress in September 1977 and protects consumers from being mistreated by debt collectors. Because of the FDCPA, debt collectors are legally not allowed to harass you or mislead you in any way (more on this in a moment). So, if you are being harassed by a debt collector, you are able to take legal action because of the FDCPA.
What Is Off-Limits for a Debt Collector?
As we mentioned, debt collectors or representatives from debt collection agencies are not allowed to harass you in any way. This means they can’t threaten you, publish your personal information, use profane language, or repeatedly call you or any third parties about you. They also legally aren’t allowed to threaten you with jail time, wage garnishment, or legal action (unless they intend to take legal action). In fact, debt collectors can’t make any false or misleading claims of any kind.
Debt collectors are also regulated on how and when they contact you. For example, they are not allowed to call you at unusual times (like before 8 a.m. or 8 p.m. unless you specifically request they do so) or contact you by postcard.
This is just a brief overview of what the FDCPA entails. Below is the Act in its entirety. For more information about your debt collection rights, you can read this guide.
(a) Abusive practices. 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) Inadequacy of laws. Existing laws and procedures for redressing these injuries are inadequate to protect consumers.
(c) Available non-abusive collection methods. Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.
(d) Interstate commerce. 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) Purposes. It is the purpose of this title [15 USCS § § 1692 et seq.] 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.
(6) after the debt collector knows the consumer is represented by an attorney with regard to the subject debt and has knowledge of, or can readily ascertain, such attorney’s name and address, not communicate with any person other than that attorney, unless the attorney fails to respond within a reasonable period of time to communication from the debt collector.
(b) Communication with third parties. Except as provided in section 804 [15 USCS § 1692b], without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a post judgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.
(3) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. If such notice from the consumer is made by mail, notification shall be complete upon receipt.
(d) “Consumer” defined. For the purpose of this section, the term “consumer” includes the consumer’s spouse, parent (if the consumer is a minor), guardian, executor, or administrator.
(3) The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency or to persons meeting the requirements of section 603(f) or 604(3) of this Act [15 USCS § § 1681a(f) or 1681b(3)].
(6) Except as provided in section 804 [15 USCS § 1692b], the placement of telephone calls without meaningful disclosure of the caller’s identity.
(b) become subject to any practice prohibited by this title [15 USCS § § 1692 et seq.].
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act [15 USCS § 1681a(f)].
(b) Disputed debts. If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) Admission of liability. The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.
(b) Authorization of actions. Nothing in this title [15 USCS §§ 1692 et seq.] shall be construed to authorize the bringing of legal actions by debt collectors.
(b) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 [15 USCS § 1692k] for failure to comply with a provision of this title [15 USCS § § 1692 et seq.].
(c) Intent. A debt collector may not be held liable in any action brought under this title [15 USCS § § 1692 et seq.] if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(d) Jurisdiction. An action to enforce any liability created by this title [15 USCS § § 1692 et seq.] may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.
(e) Advisory opinions of Commission. No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(a) Federal Trade Commission. Compliance with this title [15 USCS § § 1692 et seq.] shall be enforced by the Commission, except to the extent that enforcement of the requirements imposed under this title [15 USCS § § 1692 et seq.] is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act [15 USCS § § 41 et seq.], a violation of this title [15 USCS § § 1692 et seq.] shall be deemed an unfair or deceptive act or practice in violation of that Act [15 USCS § § 41 et seq.]. All of the functions and powers of the Commission under the Federal Trade Commission Act [15 USCS § § 41 et seq.] are available to the Commission to enforce compliance by any person with this title [15 USCS § § 1692 et seq.], irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act [15 USCS § § 41 et seq.], including the power to enforce the provisions of this title [15 USCS § § 1692 et seq.] in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.
(6) the Packers and Stockyards Act, 1921 [7 USCS § § 181 et seq.] (except as provided in section 406 of that Act [7 USCS § § 226 and 227]), by the Secretary of Agriculture with respect to any activities subject to that Act [7 USCS § § 181 et seq.]. The terms used in paragraph (1) that are not defined in this title [15 USCS § § 1692 et seq.] or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).
(c) Agency powers. For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title [15 USCS § § 1692 et seq.] shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title [15 USCS § § 1692 et seq.] any other authority conferred on it by law, except as provided in subsection (d).
(d) Rules and regulations. Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title [15 USCS § § 1692 et seq.].
(b) In the exercise of its functions under this title [15 USCS § § 1692 et seq.], the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title [15 USCS § 1692l].
This title [15 USCS § § 1692 et seq.] does not annul, alter, or affect, or exempt any person subject to the provisions of this title [15 USCS § § 1692 et seq.] from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title [15 USCS § § 1692 et seq.], and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title [15 USCS § § 1692 et seq.] if the protection such law affords any consumer is greater than the protection provided by this title [15 USCS § § 1692 et seq.].
The Commission shall by regulation exempt from the requirements of this title [15 USCS § § 1692 et seq.] any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title [15 USCS § § 1692 et seq.], and that there is adequate provision for enforcement.
I Found a Judgment on My Credit Report. Now What?
Can a creditor send your credit card bill to a relative? I recently moved locally and the credit card company sent my bill to one of my relatives who lives in another region of the country. I have no idea how they even determined our relationship- they don’t share my last name.
It depends. Creditors aren’t covered by the Fair Debt Collection Practices Act like third party debt collectors are, but there may be state laws that apply. You could try checking with your state consumer protection office or file a complaint with the CFPB.
I tried to make a payment arrangement with a debt collecter and they refused , so i then asked them if i could get a receipt when they recieved my payments they also said no they dont not have to give me anything , so i have no proof in writing that they are recieving my payments or were its going .. Is that legal..
Please submit a complaint to the Consumer Financial Protection Bureau. No, they should not refuse to give you an acknowledgement of payment when you request it.
My husband has 4 medical collections on his credit reports. We attempted to settle with the collection agency on these 4 accounts and was informed that he has several more accounts (that are apparently over 7 years old, since they aren’t on his reports). They insisted that if we wanted to make a settlement offer it had to be on all the accounts they hold not just on the 4. Can they do that? At this point we sent the collection agency a debt validation letter via certified mail but have not received a response yet.
Can I Pay a Creditor Less Than I Owe?
I had a past due amount from smud that was sold to a debt collector but now smud pick it back up and wants it in 30days can they do that after they have sold my debt.
They may not have sold it–they may have simply placed it for collection. But even if they did, presumably they could take it back if the collector was unsuccessful.
Does the collection agency have to provide proof of how the debt reached the level it has? I had a student loan for 22,000 that I defaulted on and it was sent to a collection agency that now says i owe $56,000 but even after numerous requests can not show me how the debt escalated to that amount. They also took my federal tax return of $5000 and they have no documentation of that amount being removed from the debt.
I would recommend you at least get a consultation with a consumer law attorney who understands student loan law to find out if what they have done is illegal. You can locate one through the National Association of Consumer Advocates or via The Student Loan Lawyer website. The other option would be to file a complaint with the CFPB, but given the amount of money you are talking about, in my opinion it would be at least worth talking with an attorney who understands this area of law.
I owed a fine at my local public library, which according to them was in the amount of $4.00. I had special ordered this book from a library out of town. Now, I have received a bill from a collection agency for this library in the amount of $19.00. Am I obligated to pay this fine at both places? Also, why have they been allowed to charge $19.00, which is obviously a lot more than the $4.00 my library says I owe?
The collection agency has likely added on their collection costs. Paying the collection agency should resolve the debt.
Can a third party collector add $400 to your balance after you have arranged to pay off the original balance?
I opened a loan five years ago with a local company. I did not pay the loan because it came out that the employee who opened it was doing illegal practices. The company has continued to run my credit. I have four inquiries this year alone from them. Can they continue to run my credit like this?
I would suggest you report it to the CFPB and your state attorney general or contact a consumer law attorney for assistance.
You have the right under federal law to request verification of the debt. Exactly what they must send you is a bit unclear, but they shouldn’t refuse you this right. You may need to get the CFPB or a consumer law attorney involved.
Is it actually legal for a Collections Agency to tell me “If you pay on time, and pay the agreed amount, you can save your credit score from any negative marks”?
I ask because I paid everything per agreed, on time, and in full (including interest), and I now have a negative collections mark on my credit score from the collections agency. Thankfully it has it as paid in full, but the mark is still there.
If they told you that but then it didn’t happen, then it certainly sounds like a misrepresentation to me. You can either file a complaint with the CFPB or consult a consumer law attorney for help.
Thank you for the insight! I’ve gone ahead and filed a complaint with the CFPB, which was a fantastically easy process. Consider me impressed with the ease-of-use for such a site!
Good to hear. Let us know what happens!
Sprint has sent an account to collections under my name for an account 10 years old. We have received no bill, it is not reported on my credit report. I am not even sure it is my debt, we have switched banks and 10 years of receipts are not available. We have moved from VA to FL. The supposed debt occurred in VA. They have called stating that a lawsuit has been filed against me. What in the world???? Any advice?
Something doesn’t sound right. Are you sure you are dealing with a legitimate collection agency and not a scammer? My understanding is the statute of limitations in Virginia for written contracts is five years, and the same in Florida. Have you received anything in writing (as required by law)? Have you checked out this collector on DebtLookUp.com?
hoping to see if there is anything i can do. I recently had a debt collected for a fine i didnt pay when i was younger. I did not know it but my license was suspended due to the fine. I paid the fine via a check over the phone. So they released my license and i paid the reinstatement fees to dmv. Well then they submitted the check and it didnt go through due to the fact that the lady who took my check added the check number to the account info. They promptly re suspended my license and charged me 55 bucks. I called and talked to them and they said regardless of whos fault it is i was stuck with the extra bill. Plus i had to pay 75 dollars more to reinstate my license again. Is there anything i can do about this?
Veto – Call you state legislator’s office (your state representative). They often have staff members who help constituents cut through red tape with government agencies and this sounds like something they should help you with.
I was contacted about a month ago stating I would be turned over to collections due to an expired credit card. I e-mailed back asking how to fix it because they did not sent me any contact information to fix it. I heard nothing, I went into the actual facility to try to fix it, each time there was no manager to fix it and was told they would call me and never it. Each time I tried to contact them over the course of this month I e-mailed the original address that contacted me. I even got called by a billing agency that said they could tell me how much I owe ($75) but not take the payment. Today I tried going in AGAIN, and the company has now been bought out. The original company is no longer there. How do I stop this from going to collections and getting charged YET ANOTHER month of fees when I have been trying to fix this for the last month?
Erin – What type of business is this? Is it a gym membership? Who bought it out?
We just found out about garnishment from a collection agency. We had no prior notice of this debt, we don’t know what this debt is and were not informed of the court hearings. The office claims that there was a judgement in 08, 12 and now the garnishment. NOTHING on the credit report. They won’t tell us anything about the origination of the debt and the payroll dept. is no assistance.
Can a collection agency legally collect debt that is NOT past due i.e. demand a customer to accelerate pay for the rest of the year?
Help us understand more. Collection agencies do not generally get debts until they are already past due with the original creditor, so it’s hard to understand why they would have a debt that isn’t already past due.

References: § 1692
 § 1692
 § 1681
 § 1692
 § 1692
 § 1681
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 41
 § 1692
 § 41
 § 41
 § 1692
 § 41
 § 1692
 § 181
 § 226
 § 181
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692
 § 1692