Fair Debt Collection Practices Act

Fair Debt Collection Practices Act - FDCPA
What is the 'Fair Debt Collection Practices Act - FDCPA'

The Fair Debt Collection Practices Act (FDCPA) is a federal law that limits the behavior and
actions of third-party debt collectors who are attempting to collect debts on behalf of another
person or entity. The law restricts the means and methods by which collectors can contact
debtors, as well as the time of day and number of times contact can be made. If the FDCPA is
violated, a suit may be brought against the debt collection company and the individual debt
collector within one year, to collect damages and attorney fees.
BREAKING DOWN 'Fair Debt Collection Practices Act -

FDCPA'
The Fair Debt Collection Practices Act (FDCPA) does not protect debtors from those who are
attempting to collect a personal debt. For example, if you owe money to the local hardware store
and the owner of the store calls you to collect that debt, he is not a debt collector under the terms
of this act. The act only applies to third-party debt collectors, such as those who work for a debt
collection agency.
When Can Debt Collectors Contact Debtors?

Under the terms of the FDCPA, debt collectors cannot contact debtors at inconvenient times.
That means they should not call before 8 a.m. or after 9 p.m., unless the debtor and the collector
made an arrangement for a call to occur outside of those hours. For example, if a debtor tells a
collector that he wants to talk after work at 10 p.m., the collector can call. Without invitation or
agreement, however, the debtor cannot legally call at that time.
Where Can Collectors Call Debtors?

Debt collectors can attempt to reach debtors at their homes or offices, but if a debtor tells a bill
collector, either verbally or in writing, to stop calling his place of employment, the collector must
not call that number again. Debtors can also stop collectors from calling their home phones, but
they must put the request in writing.
If a bill collector does not have contact information for a debtor, he can call relatives, neighbors
or associates of the debtor to try to find the debtor's phone number, but he cannot reveal any
information about the debt, including the fact that he is calling from a debt collection agency.
Additionally, collectors can only call third parties one time each.
What Can Debt Collectors Do?
Debt collectors can only tell a debtor about the debt and request payment. In some cases,
collectors can work out a payment plan or settlement to help the debtor pay the bill. However,
the FDCPA is designed to protect debtors from harassment by bill collectors. As a result, it is
illegal for debt collectors to harass debtors, and in particular, they cannot threaten bodily harm or
arrest. Additionally, debt collectors cannot threaten to sue debtors unless they truly intend to take
the debtors to court.
The FTC enforces the Fair Debt Collection Practices Act (FDCPA), which makes it illegal for debt
collectors to use abusive, unfair, or deceptive practices when they collect debts
The Fair Debt Collection Practices Act (“FDCPA”) was enacted in 1977 for the purpose of promoting fair
debt collection, and to provide legal protection to consumers from brutal and contentious methods of
debt collection.
The statute of limitations is a rule that sets a time limit within which a creditor may sue you for payment
of a debt. The length of time that a creditor has to sue you on an unpaid debt varies from state to state.
In some states, it's four years. In other states, it might be longer.
The Federal Fair Credit Reporting Act (FCRA) is a law that gives consumers certain rights when
companies include your credit report in a decision-making process.
It is designed to ensure:
• The accuracy of an Individual’s Credit History.
• Fairness for Everyone, no matter their status.
• Consumer Privacy Rights.

Several types of consumer reporting agencies play a role in credit reports. Some can even be hired to
obtain information like check writing history, medical history, and even rental history. Let’s take a look at
the rights offered by the FCRA.
The Right of Notification:
Individuals must be informed if their credit report has been used to deny them credit. This includes
companies that:
• Deny Credit
• Deny Employment
• Deny Insurance
The company that denies any credit request is required to give the applicant the name, address, and phone
number of the agency that provided them with the information they used for declination purposes.
The Fair Credit Reporting Act gives everyone the right to know the details of how their credit score is
calculated. Therefore, all individuals can request this information, and by law, it must be provided. The
provider will require government issued identification and in most cases, a social security number.
Furthermore, the information must be given without cost if any of the following apply:
• The Information is being used to deny credit.
• The Applicant is the victim of identity theft.
• The credit report contains inaccurate information.
• The applicant is unemployed and expects to apply for a job within the next 60 days.
• The applicant is on public assistance.
All individuals are entitled to a free credit report once every 12 months. This is true even if the above
conditions are not met.
Credit Score
Everyone has the right to ask for their score. A credit score is simply a number that represents a
calculation of one’s creditworthiness. It’s important to note that while everyone is entitled to request their
credit score from consumer reporting agencies, it is not free. However, some lenders will provide the
score free of charge.
The Right to Dispute Inaccurate Information
If a person notices something that is either incomplete or incorrect, they have the right to dispute the
claim. At that point, the reporting agency will either remove the information or verify it. This normally
happens in 30 to 60 days. If the information remains on the report, then it has been confirmed as being
accurate. On the other hand, if they cannot verify it, then it will be removed and a new score calculated.
Old Information
Credit reporting agencies will likely not list outdated information. Outdated information is normally
defined as anything older than seven years. Bankruptcies are unique and take ten years to be removed.
Access is Limited
Only those with a valid need to access a report are given access. This includes lenders, employers, or
other businesses. The FCRA specifies those with a valid need.
Must Give Consent for Reports Provided to Employers
An individual must give written consent before employers are allowed to request their report. Consumer
reporting agencies are not allowed to give out any information to employers without written consent.
Trucking companies are an exception to this rule as they are allowed access to all records for safety
reasons.
Prescreened Offers
Individuals are given the right to have their name removed from any “prescreened” offers. All insurance
companies and lenders must include a toll-free number that allows a user to call and remove their name.
The Right to Seek Damages

Finally, individuals have the right to seek damages from violations of the Fair Credit Reporting Act. Any
agency who violates these terms are subject to federal lawsuits.
Credit And Finance
Consumers Are Entitled To One Annual Credit Report. Your Credit score Is Not
Included.
Read On
The Fair Credit Reporting Act (FCRA) Is The Law That Regualtes Credit Reports And
Credit Scores..
Read On
Credit Freezes And Unfreezes will Be Free To U.S. Consumers Starting September 21st,
2018.
Read On

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Fair Debt Collection Practices Act - FDCPA

What is the 'Fair Debt Collection Practices Act - FDCPA'

BREAKING DOWN 'Fair Debt Collection Practices Act -

When Can Debt Collectors Contact Debtors?

Where Can Collectors Call Debtors?

• The accuracy of an Individual’s Credit History.

• Fairness for Everyone, no matter their status.

• Consumer Privacy Rights.

The Right of Notification:

• The Information is being used to deny credit.

• The Applicant is the victim of identity theft.

• The credit report contains inaccurate information.

• The applicant is on public assistance.

The Right to Dispute Inaccurate Information

Must Give Consent for Reports Provided to Employers

The Right to Seek Damages

Credit And Finance

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