Understanding the FDCPA
What is the Fair Dept Collection Practices Act?
The Fair Debt Collection Practices Act, often referred to as the “FDCPA”, was passed by Congress in response to abusive conduct by collection agencies, and concern that the abuses were causing an increase in the filings of personal bankruptcies. The purpose of the Act is to provide guidelines for collection agencies which are seeking to collect legitimate debts, while providing protections and remedies for debtors.
What types of debts are covered?
The FDCPA applies to personal, family, and household debts, including debts associated with the purchase of a car, for medical care, for retail financing, for first and second mortgages, and for money owed on credit card accounts. Please note that most states have similar laws, which typically proscribe the same types of misconduct by debt collectors and which may cover a broader range of debts than the federal law.
What debt collectors are covered by The Act?
The act regulates the conduct of debt collectors: any person who regularly collects debts owed to others. This definition includes lawyers who perform debt collection services on a regular basis. Even where money is legitimately owed, a debt collector’s conduct is restricted by this law. >>continue reading
