Violating the Fair Debt Collection Practices Act

By: Joe Cline
In 1978, the Fair Debt Collection Practices Act was added, as Title VIII, to the Consumer Credit Protection Act. Its purpose is to ensure debt collection is pursued fairly rather than abusively and to give consumers a way to dispute or validate the accuracy of certain debt information. Guidelines inform collectors on how to conduct business, the rights of consumers and the penalties for violating the Act.

How exactly does one violate the Fair Debt Collection Practices Act?

There are several ways to violate the Act, beginning with a failure to follow proper protocol when obtaining information: During this process, a collector must identify himself and state merely that he is collecting information, not that the consumer in question is in debt. The collector may only approach an individual once unless otherwise requested, and communication cannot be in the form of a post card. Any documents exchanged must not reveal that the collector is attempting to collect from the debtor, and finally, once an attorney is obtained by the debtor, the collector must go through the attorney and no other individual.

Similarly, when collecting the debt, certain rules apply: Communication between the debtor and the collector may not take place at any unusual or inconvenient time or place. In most cases this means meeting no earlier than 8 a.m. and no later than 9 p.m. If an attorney has been hired, communication must go through the attorney, and a collector must not contact the debtor at his/her place of work if the collector knows the employer would object to this. Moreover, third parties may not be included without full consent from the consumer, and if the consumer indicates that communication should be stopped as a result of debts being repaid or other steps taken, the collector must cease all communication.

A third type of violation occurs when the collector harasses or abuses the debtor or provides false and/or misleading information. Harassment or abuse involves: threatening violence; using obscene language or language intended to abuse the debtor; calling repeatedly with the intent of annoyance; publishing a list of consumers who do not pay debts; advertising a debt for sale so as to coerce payment; not disclosing one's identity when calling.

False or misleading representation refers to alleging the debt is in some way connected to the United States federal government or a state government and using to a badge or other government ID to back up this claim; providing false information about a debt's status, character or amount; implying that information not siphoned through an attorney has been; making unjustifiable threats; and similar acts of misrepresentation.

If a consumer feels the Act has been violated, he may file a private lawsuit in state or federal law to collect damages and can, in fact, collect up to $1,000 plus attorney fees without proving actual damages, if claiming statutory damages and the debt is proven to have violated the Act. The Federal Trade Commission, if aware of a violation, may also take action against the collector.

For more information, read the Fair Debt Collection Practices Act at http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf



About The Author:
Joe Cline is a freelance writer who frequently contributes and comments on legal issues. Learn more by visiting The Cronfel Firm website. Guillermo Ochoa-Cronfel is the principle of The Cronfel Firm and specializes in creditor relations