The FDCPA is a federal law that provides residents of all states with considerable rights and protections against abusive, unfair and deceptive debt collection practices used by debt collectors. Examples of debt collection practices prohibited by the FDCPA include using profane language, lying and calling a debtor at work if the debt collector knows the employer disapproves. The debt collector must also protect the debtor’s privacy by not disclosing the debt to others such as friends, family members or co-workers.

A debt collector, as defined in the FDCPA, is anyone who regularly collects debts on behalf of an original creditor. Original creditors, such as credit card companies and banks, are not considered debt collectors when they attempt to collect debts owed directly to them. Therefore, original creditors are not covered under the FDCPA.

The FDCPA covers only consumer debt, which includes personal, family and household debt, but not business debt or any debt incurred for business purposes. Common types of consumer debt are credit card debt, automobile loans, home loans, utility bills and medical debt.

FDCPA FAQ

What must the debt collector tell you about the debt?

Within five days after you are first contacted, the collector must send you a written notice telling you the amount of money you owe, the name of the creditor to whom you owe the money, and what action to take if you believe you do not owe the money.

May a debt collector continue to contact you if you believe that you DO NOT owe money?

A collector may not contact you if, within 30 days after you are first contacted, you send the collection agency a letter stating you do not owe money. However, a collector can renew collection activities if you are sent proof of the debt, such as a copy of a bill for the amount owed.

What types of debt collection practices are prohibited?

Harassment: Debt Collectors may not harass or abuse you. For example, debt collectors may not:

• Use threats of violence or harm against the person, property, or reputation;
• Publish a list of consumers who refuse to pay their debts (except to a credit bureau);
• Use obscene or profane language;
• Repeatedly use the telephone to annoy someone;
• Telephone people without identifying themselves;
• Advertise your debt.

False Statements: Debt Collectors may not use any false statements when collecting debt. For example, debt collectors may not:

• Falsely imply that they are attorneys or government representatives;
• Falsely imply that you have committed a crime;
• Falsely represent that they operate or work for a credit bureau.

Summary of Illegal Actions:

• A debt collector calls you at work and knows that it is inconvenient or that your employer disapproves or forbids it.
• A debt collector calls you before 8:00 a.m. or after 9:00 p.m. in your time zone.
• A debt collector makes an excessive number of phone calls to annoy or harass you.
• A debt collector knows that an attorney, whose contact information is known or is easy to locate, represents you and the debt collector continues to contact you.
• A debt collector tells a person other than you, your spouse, or your attorney that you owe money. (If you are a minor, the debt collector can tell your parents or guardians about the debt.) Debt collectors can only communicate with other people to obtain contact information about you.
• A debt collector misrepresents the amount, character, or legal status of a debt.
• A debt collector gives others credit information about you that is false, or should be known to be false.
• A debt collector fails to honor your dispute or cease communication rights.
• A debt collector threatens to take your property or garnish your wages when this action would not be legal or the debt collector does not actually intend to do it. Your property cannot be taken and your wages cannot be garnished without a court order (judgment).
• A debt collector uses, or threatens to use, violence or any other illegal means to harm you, your family, your reputation, or your property.
• A debt collector uses profane or obscene language when communicating with you.
• A debt collector threatens you with criminal prosecution or implies that you have committed a crime. Debt and credit issues are matters of civil law, not criminal law.
• A debt collector tricks you into accepting charges for collect calls, telegrams, a C.O.D., etc.
• A debt collector cashes, or threatens to cash, a post-dated check before the date written on the check, if the check is post-dated by five days or more.
• A debt collector does not give three to 10 days advance notice before cashing a check that is post-dated by five days or more.
• A debt collector claims to be an attorney or sends a letter made to look like it is from an attorney (unless the debt collector really is an attorney).
• A debt collector sends a letter that is made to look like a government or court document when it isn't.
• A debt collector sends a government or court document that is not recognizable as such.
• A debt collector threatens any action against you that is not legally feasible or that the debt collector does not intend to take.

What can you do if believe that a debt collector violated the law?

You may have the right to sue a collector in a court of law. If you win, you may recover money for the damages you suffered and, in certain jurisdictions, you may recover statutory damages. In addition, in certain jurisdictions, court costs and attorney's fees may also be recovered.

Where can you report a debt collector for an alleged violation?

Report any problems you have with a debt collector to the office of your state attorney general and the Federal Trade Commission. Many states have their own debt collection laws and your state attorney general can help you determine your rights. In addition, you may contact a local attorney to determine your legal options regarding an alleged FDCPA violation.

Source: http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm [1]