FDCPA: Regulations for Debt Collecting

Posted November 11, 2019

In 1978, the United States added the FDCPA statute as Title VIII of the Consumer Credit Protection Act. FDCPA stands for Fair Debt Collection Practices Act. This act regulates the ways that debt collectors may act, what the consumer’s rights are, and what the consumer can do about any fraudulent activity by debt collectors. This blog will talk about the regulations for debt collecting.

Prohibited Acts

The FDCPA dictates some things that debt collectors are prohibited from doing and what consumers can do if they experience abusive debt collection. Sometimes debt collectors will do things like tell consumers they don’t have to validate the debt because it has been more than 30 days. The FDCPA highlights the section that explains the 30-day regulation and shows that it has nothing to do with validation.

And while the debt collectors have no deadline for contacting the customer back after a dispute, they must cease all collection efforts until they have validated the debt.

This act also regulates how a debt collector may contact you and when. Some of the regulations include the following:

Debt collectors may not contact you before 8 AM or after 9 PM
Debt collectors may not contact a third party about your debt
Within five days of the first contact, debt collectors must mail you the information with the amount owed, to whom you owe, and what actions can be taken if you believe you don’t owe the money

Consumer Rights

The major topics highlighted in this act are the consumer’s rights to fair debt collection and the validity of the information. Consumers have the right to contact the debt collector and request information so that they may verify if the debt belongs to them. Collectors must immediately cease all collection efforts until they have provided this information to the consumer and it has been proven that the debt is theirs to collect.

What is included in a legal debt validation?

Notice of debt;
Amount of debt;
Name of the creditor to whom the debt is owed;
A statement that notifies the consumer that the debt will be assumed to be valid if they don’t respond within 30 days
A statement that if the consumer disputes the debt, the creditor will mail them a legal debt validation
A statement that when the consumer disputes the debt, the debt collector will mail them the name and information of the original creditor

If you believe you are not responsible for the debt you owe, contact us. We know that regulations for debt collecting can be tricky, but we are here to help.

The Credit Care Company can help you with any of your credit repair needs.