What Is The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act, also known asallowed. You must approve any calls that are made
the FDCPA, is a law, which was passed by Congressoutside this time span first. Debt collectors are also
that regulates the methods collection agencies, cannot allowed to call you while you're at your place of
use to collect money from debtors who are behindemployment. The use of profanity or racist terms is
on their payments. In the past many collectionalso not allowed. Letters cannot be sent to you that
agencies would use unethical methods to extractresemble those sent by courts, and if they decide to
payments from people, and this law was created tosue you they are not allowed to take you to a court
regulate them while protecting the debtor.that is far from your home.
There are certain guidelines that collection agenciesIt is important to understand this law if you find
must follow when attempting to get payments. Theyourself in a situation where you have a large
FDCPA applies to a wide variety of debts, includingamount of debt and are having trouble making
medical bills, car loans, and credit cards. Many statespayments. While you should always try to repay
have additional laws that serve to protectback what you owe, collection agencies are limited in
consumers, and their laws may cover debts thathow they are able to contact you about those
aren't covered by the FDCPA. It is important to havepayments. Many agencies may violate this law, and if
a basic understanding of this law. It will keep youyou are not familiar with it you will not be able to
from being the victim of collection agencies that usetake any actions to defend yourself. If a collection
illegal methods of extracting payment from you.agency violates the FDCPA, it may be possible for
Under this law, collection agencies are not allowed toyou to take them to court. If it is found that they
contact the relatives or employers of a debtor. Thehave made numerous violations against debtors, a
only person who may be contacted other thanclass action lawsuit may be filed.
yourself is someone who has co-signed the loan withIf a collection agency violates this law when
you. They are also not allowed to threaten to ruincontacting you, you can report the incident to the
your credit or report you to an attorney in order tostate Attorney General's office. If the agency is in a
intimidate you into making payments. They may onlydifferent state, you can contact the Federal Trade
warn of you these actions when they are in theCommission for assistance. You can also dispute the
process of getting ready to do it. Making falsedebt you owe by sending a letter to the agency
warnings to scare you into making payments is notwithin 30 days of the first notice informing them that
allowed.you do not owe them anything. The agency will be
Collection agencies are not allowed to make phoneforced to stop contacting you, but may decide to
calls at times that are deemed unreasonable. Anytake further action that may require you to go to
phone calls made before 8 AM or after 9 PM are notcourt.