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Federal Debt Collection Act Article
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Defend Yourself with the Fair Debt Collection Act
from:In 1977, the United States’ congress passed the Fair Debt Collection Practices Act. Commonly referred to as the Fair Debt Collection Act, this law was drafted in order to provide guidelines, procedures and limitations to regulate the activities that are done in debt collection processes. Because of the Fair Debt Collection Act, debt collectors have refrained from using threats, lies or insults to harass and intimidate debtors.
In order to understand this act, you must first have an understanding of what a debt collector is. According to the Fair Debt Collection Act, a debt collector is someone who “uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another”. To put it simply, a debt collector is someone who collects payments that debtors owe to another company. For example, you have a delinquent account with a credit card company. Once the credit company feels that too much resource is required to pursue you to make payments, it will hire a debt collector to pursue the payments for them.
Now that you understand what a debt collector is, you must also know what the debt collector’s job entails. The Fair Debt Collection Act details the information that your debt collector must give you. Remember, for the debt collection activity to be legitimate, you should first be supplied with documents that will help you understand the situation you are in.
Once the debt collector has contacted you, he has five days to provide you with the following:
1) The exact figures regarding that debt that you supposedly owe.
2) Information about the creditor that you owe the debt to.
3) The debt collector must tell you that you have a maximum of 30 days to raise your doubts or disagreements regarding the nature and specifics of the debt. If you do not dispute the debt, the collector assumes that the debt is valid and binding.
4) In case you claim that you have no debt, the debt collector must immediately send you documents and other certificates that will verify the debt.
5) Under the Fair Debt Collection Act, the debt collector should inform you that if you have switched creditors, you are allowed to ask for information regarding your original creditor.
As you can see, the Fair Debt Collection Act mandates that the debtor be given adequate details as well as ample time to evaluate them and raise whatever concerns he may have. If for some reason, the debt collector becomes aggressive and abusive, the Fair Debt Collection Act also gives the debtor the right to sue the debt collector.
However, the debtor must remember that the Fair Debt Collection Act of 1977 does not erase debts. It isn’t a get-out-of-debt ticket. It simply ensures that debt collectors will be able to do their work and solicit payments without violating the rights of the debtors.
Federal Debt Collection Act News
Mike Ginsberg: First Quarter ARM Legal, Legislative and Regulatory Climate ... - InsideARM
 InsideARM | Mike Ginsberg: First Quarter ARM Legal, Legislative and Regulatory Climate ... InsideARM Barney Frank introduced HR 4101, The Fair Debt Collection Practices Clarification Act of 2012. This bill seeks to amend the Fair Debt Collection Practices Act to exempt a debt collector from liability when leaving certain voice mail messages for a ... |
FTC settles with debt collectors over bogus magazine payments - Chicago Tribune
 The Consumerist (blog) | FTC settles with debt collectors over bogus magazine payments Chicago Tribune Debt collectors who allegedly sought bogus payment from consumers for magazine subscriptions have settled with the Federal Trade Commission. According to the FTC's complaint, the defendants, who handle collection of hundreds of thousands of accounts ... Luebke Baker & Associates, FTC Settle For Collecting On Fake Debts Know your rights when dealing with a debt collector Fake debt scam surfaces in Upson County |
Debt collector may not call you at work - Victoria Advocate
Debt collector may not call you at work Victoria Advocate Under a federal law, called the Fair Debt Collection Practices Act, it is unlawful for a debt collector to call you at work once he knows your employer prohibits such calls. If the debt collector continues to call, you would have a claim for damages ... |
How to Protect Yourself From Criminal Debt Collectors - U.S. News & World Report
 InsideARM | How to Protect Yourself From Criminal Debt Collectors U.S. News & World Report To combat poor regulation of debt collectors in Oklahoma, Bill Bartmann, founder and CEO of the debt-collection company CFS II, helped develop Senate Bill 1430, known as the Bartmann Ethical Debt Collection Act. The bill, which calls for state ... Bad News for Most Debt Collectors and Good News for Consumers |
In Congress, a Move to Look Into a Medical Debt Collector - New York Times
 Minneapolis Star Tribune | In Congress, a Move to Look Into a Medical Debt Collector New York Times A California representative is calling for an investigation into Accretive Health, one of the nation's largest collectors of medical debt, for potentially violating a federal law that requires hospitals to provide emergency care regardless of ... Debt collectors sued by Minnesota as they stake out the ER Accretive Health's collection tactics fuel hospital outsourcing debate Hospital debt collector sued for harsh practices |