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, amended in 2010, 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 within one year against the debt collection company and the individual debt collector for damages and attorney fees.

The FDCPA does not protect debtors from those who are attempting to collect a personal debt. If you owe money to the local hardware store, for example, 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. Credit card debt, medical bills, student loans, mortgages, and other household debt are covered by the law.

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. If a debtor tells a collector that he wants to talk after work at 10 p.m., for instance, the collector is allowed to call then. Without invitation or agreement, however, the debtor cannot legally call at that time. Debt collectors may also send letters, emails, or text messages to collect a debt.

Within five days of contacting a debtor, a debt collector must send a written "validation notice" that includes:

• How much money is owed
• The name of the creditor the debt is owed to
• What to do if you think the debt is not yours

Where Can Collectors Call Debtors?

Debt collectors can attempt to reach debtors at their homes or offices. However, 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 a letter and send it to the debt collector. It's a good idea to send the letter by certified mail and pay for a return receipt in order to have proof that the collector received the request.

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. (The collector may only discuss the debt with the debtor or their spouse.) 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. The law has made it illegal for them to harass debtors and in particular, they cannot threaten bodily harm or arrest. They also cannot lie or use profane or obscene language. Additionally, debt collectors cannot threaten to sue a debtor unless they truly intend to take that debtor to court.