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Fair Debt Collection Practices Act

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What Is Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that provides limitations on what debt collectors can do when collecting certain types of debt. The federal Fair Credit Reporting Act covers how debt collection is reported in credit reports. In addition, there are state laws that provide protections. The FDCPA prohibits debt collection companies from using abusive, unfair, or deceptive practices to collect debts, also mortgages, from an individual.

Deeper Definition

The FDCPA has protected many from the shame and disgrace associated with debt collection. The debt collector is meant to have a claim on their money with the debtor, and there are ways it should be collected; the law will help protect the debtor’s integrity to an extent to which it can. One of the reasons there’s always a paper stating the whole deal, most debtors even have it on video record so as not to be told how to receive their money.

The Fair Debt Collection Practices Act prohibits debt collectors from using harassing or abusive practices to collect the debt. Besides other restrictions, debt collectors cannot use profane language, threaten or use violence against their debtors. There are better approaches that could help apply in cases where one is not willing to pay off their debt at the agreed time. One must keep to the agreement in cases of debt, but if no resolution is reached, it still does not mean the next course of action is violence; this speaks to everyone who lends to others.

Some of the ways the law can defend you include:

  • You control communication with debt collectors
  • You’re protected from harassing or abusive practices
  • Debt collectors must be truthful
  • Unfair practices are prohibited
  • Collectors must validate your debt

Fair Debt Collection Practices Act Example

Jane and Monica are friends, Monica lent Jane $5000, and they both decided that Jane was paying off on a set day, and unfortunately, she couldn’t. Monica is furious with Jane, but she was careful with her approach because they both agreed on using the FDCPA beforehand, and going back on the plans was non-negotiable.

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