The Fair Debt Collection Practices Act

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The Fair Debt Collection Practices Act, or FDCPA, is a federal law designed to protect consumers from abusive, harassing, fraudulent or unfair collection practices. The FDCPA sets out specific acts which are prohibited and gives consumers important rights. The FDCPA also gives you the right to sue violators for damages, including damages for emotional damages.

Here is a summary of the rights and protections given by the FDCPA:

What types of Debts are Covered?

Personal, family, and household debts are covered under the Act. This includes money owed for the purchase of an automobile, for medical care, or for charge accounts. The FDCPA does not apply to business or commercial debts. The FDCPA also does not apply when the original creditor is taking action to collect its own debt, unless that creditor uses another name to collect the debt.

Who is a “Debt Collector”?

Any person who regularly engages in the collection of debts for another person. This does not include the original creditor unless the creditor uses another name when it seeks to collect its debt. It is now common for debt to be assigned or “sold” to another person or company for collection. The person or company who takes assignment of the debt, commonly called a “debt buyer,” is a debt collector under the FDCPA.

What Types of Debt Collection Practices are Prohibited

Harassment: Debt collectors are prohibited from engaging in “conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt.” Any conduct which meets this description is a violation of your rights. In addition to this general description, the FDCPA sets out specific actions which are considered harassment. A collector is guilty of harassment if it:

- Makes threats of violence or harm;
- Uses obscene, profane or abusive language
- Publishes a list of consumers who refuse to pay their debts (except to a credit bureau);
- Repeatedly calling a person with the intent to annoy, abuse or harass.

False statements: Debt collectors may not use any false or misleading statements when collecting a debt. For example, debt collectors may not:

- Falsely imply that they are attorneys or government representatives;
- Falsely imply that you have committed a crime;
- Falsely state or imply that the failure to pay the alleged debt will result in arrest, seizure of property or garnishment;
- Falsely represent that they operate or work for a credit bureau;
- Misrepresent the amount of your debt;
- Communicate false information about you to others;
- Report a debt which you have disputed to a credit bureau, unless it also reports the debt as “disputed.”
- Indicate that papers being sent to you are legal forms when they are not; or
- Use any other false or deceptive means to collect a debt

Phone Calls: While collectors are not generally prohibited from calling you, there are some important restrictions. A collector violates the law if it:

- Makes repeated or continuous calls with the intent to annoy, abuse or harass;
- Fails to meaningfully identify itself in the conversation;
- Calls at unusual times or places which the collector knows will be inconvenient;
- Calls you after 8:00 p.m. or before 9:00 a.m. without your permission;
- Calls you after you have made a written cease and desist request (for more about making such a request, click cease and desist request);
- Calls you directly if you have an attorney;
- Calls others (such as friends, neighbors, family members or your employer) to discuss your debt or financial information (for more on this subject click here);
- Calls you at work, if collector is told that you can not take the call at work;
- Calls to threaten legal action which it cannot or does not intend to take;
- Calls to threaten violence or threatens other illegal action;
- Calls and uses profane, obscene or abusive language;
- Falsely implies in a phone conversation that the caller is a lawyer, private detective, government official or credit bureau representative, or tells you any other lie over the phone.

Unfair Practices: Collectors are prohibited from using any “unfair or unconscionable means to collect or attempt to collect any debt.” The FDCPA gives some examples of unfair or unconscionable conduct, including:

- Attempting to collect amounts that are not expressly authorized by the agreement creating the debt or by law;
- Accepting a check that is postdated for more than 5 days, unless it notifies you in writing before it deposits the check;
- Threatening to take action which is not legal or which the collector has no intention to take;
- Sending a post card to a debtor;
- Putting a name or symbol on the outside of an envelope which indicates that the letter is from a debt collector;
- Depositing or threatening to deposit a postdated check prior to the date on the check;

Your Right to Dispute the Debt and Request Verification of the Debt

You have the right to dispute the validity of the debt, or any part of the debt, which the collector is trying to collect from you. The collector must inform you of this right when it first contacts you or within 5 days of the first contact.

If you dispute the debt in writing within 30 days after receiving the notice of your right to dispute, then the collector may not take further collection action against you until it provides written verification of the debt to you.

For more about submitting a dispute, click here

Lawsuits by the Collector

If the collector files suit, the collector cannot,

Sue you in a jurisdiction outside of the county where you live;
File suit on a debt that is too old and barred by the statute of limitations;
Contact you directly if you are represented by an attorney;

Suing The Debt Collector for Violating Your Rights

Perhaps the most important part of the FDCPA is the consumers right to sue a violating collector for damages. Without this right, enforcement of the law would be left to federal or state agencies who are not big enough to police all of the collectors.

Where a collector violates the FDCPA, you have the right to sue for damages caused by the violator, including mental or emotional distress, statutory damages and for attorneys fees. The right to collect attorney fees from the violator is very important because it allows a consumer attorney to bring suit for you in many cases without any cost to you.

Claims for FDCPA violation may be brought directly against the violator or as “counterclaims” against the debt collector if it sues you.

Contact a Consumer Attorney

If you believe you may have a claim for violation of the FDCPA and would like to speak with an Alabama consumer attorney, call 1-800-432-9212 or click this link.

To find out more about your rights or to contact a consumer lawyer for a free consultation, call 1-877-432-9212 or email Kenneth J. Riemer, Attorney at Law.

There are important and very real disclaimers attached to the information provided here, including a reminder that this site is not intended to provide state law information for any state other than Alabama and that the information provided is not intended as, and can not be a substitute for, legal advice addressing your specific situation. For more, go to legal disclaimer.

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