The Fair Debt Collection Practices Act of 1977 (FDCPA) was enacted in an effort to protect consumers from harassment by determined but unscrupulous debt collectors. The resulting regulations shield consumers (those owing debts) from harassment and protect reputable debt collectors from unfair competition. Debt collection in the United States is mostly governed by this act, so debt collection laws do not vary much from state to state. States can make their own laws as long as they are not inconsistent with the FDCPA.
Original Creditors Defined by FDCPA
The first thing a person should do when contacted by a collector is ask, “Are you the original creditor?” According to the FDCPA, an original creditor is not considered a debt collector and is not subject to the outlined restrictions. As long as they do not break any other laws, original creditors can be as unpleasant as they like.
What Are Debt Collectors Permitted to Do?
A consumer might better ask what debt collectors are not permitted to do. These restrictions are spelled out in the FDCPA:
- Generally speaking, debt collectors are not permitted to misrepresent themselves. They may not falsely claim to be attorneys or representatives of government agencies.
- They may not contact the consumer by means of postcards or mail that can be identified from the outside as coming from a debt collector.
- They may not refuse to identify themselves, or offer any information concerning the debt to any third parties contacted in an effort to acquire information about the consumer.
- They may not contact information sources repeatedly unless requested to do so or unless they believe that information previously acquired was incomplete or inaccurate, and that the source has since obtained complete, accurate information.
- They may not make repeated phone calls with intent to annoy the consumer, or contact him or her at work if they have reason to know that the employer prohibits the employee from receiving such calls.
After the debt collector knows that the consumer is represented by an attorney in regard to the debt, and can get contact information for the attorney, the collector may not communicate about the debt with anyone other than the attorney. However, if the attorney does not respond to the collector within a reasonable period of time, the collector may resume other efforts to recover the amount owed.
If a consumer notifies a debt collector in writing that they refuse to pay the amount owed or that they want the collector to stop contacting them in regard to the debt, the collector must stop communicating with the consumer. However, the debt is still owed, and the creditor can take other steps to recover it, such as a legal action leading to a court order to pay. Just telling the collector to quit calling does not allow a debt to go unpaid.
According to FDCPA 807 (11), debt collectors must disclose, in their initial communication with the consumer, that the purpose of the communication is to attempt to collect a debt. Further, they must disclose that any information obtained from the communication will be used to collect the debt. The remedy available to a consumer who has been contacted in violation of the FDCPA is up to $1000 per infraction plus costs and attorney fees.