See LAWDOG's Complete Coverage of the
Federal Fair Debt Collection Practices Act

Under the Federal Fair Debt Collection Practices Act, a "debt collector" is any person, other than the creditor, who regularly collects debts owed to others. This now includes certain lawyers who collect debts. "Debt collectors" are required to follow specific rules to protect the rights of consumers.

Additional Duties May Be
Required By State Laws

State laws may impose additional duties. For example, under laws in many states, similar provisions may cover creditors collecting their own accounts. Some, but certainly not all, of the highlights of the Fair Debt Collection Practices Act are discussed below.

Personal, Family, or Household?

The Fair Debt Collection Practices Act applies generally to personal, family, and household debts. Common examples would include bills for consumer automobile purchases, medical care, and personal charge accounts. Under the Fair Debt Collection Practices Act, "Debt collectors" may not engage in unfair, deceptive, or abusive practices in the collection of these accounts.

Prohibited Practices

Under the provisions of the Fair Debt Collection Practices Act, generally, "debt collectors" may not harass, oppress, or abuse consumers, must cease certain contacts and communications when requested to do so, and must identify themselves in certain circumstances. In addition, "debt collectors" may contact consumers, generally, only between the hours of 8:00 a.m. and 9:00 p.m., local time of the consumer.

Notices, "Skip Tracing"

"Debt collectors" must send to the consumer a written notice, within five days after first contact, advising the consumer of the amount of money owed, the name of the creditor to whom owed, and a notice of rights. A "debt collector" must generally not contact anyone other than the attorney, if the consumer is represented by counsel.

"Skip Tracing"

Certain parties may be contacted once to verify certain location or employment information. In making such limited contacts, the "debt collector" may not generally advise third parties that money is allegedly owed by the consumer.

Special Duties If Consumer Disputes

If the consumer sends a written dispute letter within 30 days after first contact, disputing that the debt is owed, the "debt collector" must cease collection activities. These collection activities may be resumed only if proof of the debt, is first sent to the consumer.

Validation of Debt

The "proof" of the debt may involve supplying an item, such as a copy of a bill or ledger in certain instances, but may involve much more. This is an early opportunity for the creditor and the "debt collector" to become aware of billing errors, computer errors, clerical errors, documentation problems, errors in identity, problems with goods or services, and any other problem which can be resolved at this early stage. The treatment of disputed accounts involves issues which should be discussed with legal counsel.

Collection activities must also cease if the consumer sends a letter to the collection agency instructing the agency to cease all contact. After receipt of such notice, further contact generally may not be made, except to acknowledge that contact will cease, or to notify of certain actions.

Other Federal and State Laws May Apply

In addition, Federal laws such as the Fair Credit Reporting Act, and others may apply to the same factual situation. In addition, state laws must be considered in each state. State laws may apply which are more restrictive, or impose additional duties, perhaps even on additional parties. Some illustration of various state laws are available at LAWDOG "State Laws By State" from the previous menu, or here. Always discuss actual cases with your actual legal advisor or legal department.

More Information

This short summary illustrates some of the rules which may apply, but is certainly not intended to be, and is not, a complete description of the Fair Debt Collection Practices Act. A copy of the Federal Fair Debt Collection Practices Act is linked here, from Cornell Law School's Legal Information Institute.

The Federal Trade Commission also has an excellent site which includes the Fair Debt Collection Practices Act, FTC Staff Commentary on the FDCPA, FTC Staff Opinion Letters, and publications, linked here. These links, and many others, are available at LAWDOG Library.

See LAWDOG's Complete Coverage of the
Federal Fair Debt Collection Practices Act