Fair Debt Collection: Some Provisions Of Under The Act

Fair Debt Collection
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Fair Debt Collection
Those who are behind paying their bills or creditor’s makes it appear so even due to errors, they are likely to be contacted by a debt collector. There is a likelihood of debt collectors to use abusive, unfair or deceptive practices when collecting from the debtors. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from practicing such practices while trying to collect from debtors. According to FDCPA, a debt collector is someone who collects a debt that is owed to others including lawyers who collect debts, collection agencies and companies that buy debts and attempts to collect them on behalf of the creditor (Federal Trade Commission).
The Act outlines the debts that can be collected by debt collectors and the practices that they are supposed to observe while trying to collect the debt. In general, it provides limitations to what the debt collectors can do when trying to collect a debt. The Act also provides the types of debtors that it applies to, they include: medical debts, mortgages, credit cards and other debts that are for family, personal or household use.
Some of the provisions of under the Act include:
* The debtor has a right to sue the collector either individually or as a group in case the debt collectors violate the law.
* It protects the consumers against harassment in form of threats, too much phone calls, or abusive language.
* Debt collectors are prohibited from disclosing the details of the debt to those who are not authorized to know it.
* It bans debt collectors from contacting the debtor at inconvenient time unless agreed between them.
* The debtors are allowed to seek proof that they actually owe the amount they are asked by the debt collectors (Federal Trade Commission).
According to the Act, when making contact in the first time, the debt collectors must inform the consumers of their rights including a right to dispute the debt. They must also reveal the following information to the consumers: amount owed; creditors name; if they do not dispute the debt within 30 days, it will be considered valid; and they can ask for verification of the debt. The Act also provides that this information can be provided over the phone or in writing within five days of the first contact (Lee, 2013).
The Act provides more details on how consumers can be protected from excessive phone calls. Some debt collectors will continuously make phone calls to consumers at their workplaces something that may jeopardize their jobs since most employers prohibit phone calls at work. The consumer has a right to request the debt collector to communicate thr...