The Fair Debt Collections Practices Act (FDCPA, 1977, and amended since then) is a federal law designed to prohibit abusive practices by debt collectors. Congress stated, “It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to ensure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantageous, and to promote consistent State action to protect consumers against debt collection abuses.” The act applies to debts incurred by consumers involving money, property, INSURANCE, or services. At the time, Congress found that (A) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual PRIVACY. (B) Existing laws and procedures for redressing these injuries are inadequate to protect consumers. (C) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts. (D) Abusive debt collection practices are carried on to a substantial extent in interstate commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce. The act generally prevents debt collectors from contacting anyone other than the person who incurred the debt. Previously debt collectors often contacted relatives, employers, and friends, attempting to intimidate or embarrass people into paying the debt. The act states that any debtor communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall “only ask location information; not state that the consumer owes any debt; not use postcards or any symbols or language in mailings referring to debt collection; and not communicate with any person other than the attorney, after the debt collector knows the consumer is represented by an attorney.” Without the prior consent of the consumer given directly to the debt collector, a debt collector may not communicate with a consumer at the consumer’s place of EMPLOYMENT or at any unusual time. (Generally debt collectors can only contact consumers between 8 A.M. and 9 P.M. local time.) The act also requires the collector to provide details regarding the debt within five days of initial contact. If a consumer notifies a debt collector in writing that they refuse to pay a debt or that they wish the debt collector to cease further communication with the consumer, the debt collector must not communicate further with the consumer regarding the debt. The act states that the debt collector may not engage in any conduct to harass, oppress, or abuse any person in connection with the collection of a debt. The following list provides an idea of the types of practices utilized before the FDCPA.
• The use or threat of use of violence or other criminal means to harm the physical person, reputation, or property of any person.
• The use of obscene or profane language or language the natural consequence of which is to abuse the hearer or reader.
• The publication of a list of consumers who allegedly refuse to pay debts, except to a consumer reporting agency.
• The advertisement for sale of any debt to coerce payment of the debt.
• Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
The act states further: a debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt, including
• the character, amount, or legal status of any debt
• any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt
• the false representation or implication that any individual is an attorney or that any communication is from an attorney
• the representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action
• the threat to take any action that cannot legally be taken
• the false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to lose any claim or defense to payment of the debt, or become subject to any practice prohibited by this title
• the false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer
• communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed
• the use of distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States, or which creates a false impression as to its source, authorization, or approval
• the use of any false representation of deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer
• the false representation or implication that accounts have been turned over to innocent purchasers for value
• the false representation or implication that documents are legal process
• the use of any business, company, or organization name other than the true name of the debt collector’s business, company, or organization
• the false representation or implication that documents are not legal process forms or do not require action by the consumer
• the false representation or implication that a debt collector operates or is employed by a consumer reporting agency
The Federal Trade Commission is the primary federal agency responsible for enforcement of the FDCPA, which also allows individual civil actions and class actions by consumers or consumer groups.
See also CONSUMER CREDIT PROTECTION ACT.