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LAWDOG Fair Debt Collection Practices Act
Unfair or Unconscionable Means to Collect
LAWDOG is intended to assist in the understanding of basic concepts. See Disclaimer. Always obtain legal advice from legal professionals.
Collector May Not Add Fee or Charge Unless Authorized
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. This includes the collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. See Section 808 (1) of the Fair Debt Collection Practices Act reproduced here for illustration purposes only.
Expressly In Contract or Expressly Permitted By State Law Only
A portion of the FTC Official Staff Commentary on the Fair Debt Collection Practices Act reproduced here for illustration purposes only, includes the following:
"A debt collector may attempt to collect a fee or charge in addition to the debt if either (a) the charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or (b) the contract is silent but the charge is otherwise expressly permitted by state law. Conversely, a debt collector may not collect an additional amount if either (A) state law expressly prohibits collection of the amount or (B) the contract does not provide for collection of the amount and state law is silent."
Prohibited Actions Not Limited To Listed Examples
Section 808 of the Fair Debt Collection Practices Act prohibits a debt collector from using "unfair or unconscionable means" in debt collection activity. It provides eight examples of these unfair practices. However, prohibited actions are not limited to the eight subsections listed as examples of activities that violate this provision. See each of the other illustrations from the previous menu.
A copy of the Fair Debt Collection Practices Act is reproduced for illustration purposes only
here. A copy the FTC Official Staff Commentary on the Fair Debt Collection Practices Act is reproduced for illustration purposes only here. Read Sources and Disclaimer. Links do not return to this page. Use browser "back" button to return.
