The Fair Debt Collection Practices Act (FDCPA) is a law originally passed in 1978 to protect consumers and regulate the tactics used by debt collectors.
If you have had debt collectors hounding you over a debt, it is imperative that you know what your rights are as outlined in the FDCPA.
The FDCPA is what you will be using to protect you against third-party debt collectors and their unfair practices and illegal debt collection tactics. The FDCPA allows you to fight back against them.
It is your best weapon to get debt collectors out of your life and collection accounts off of your credit report. It is also what allows you to sue them in small claims court for violating your consumer rights.
Rights Guaranteed to Consumers Under the Fair Debt Collection Practices Act
One of the main tools given to consumers in the FDCPA is the right to debt validation. Any time you are contacted about a debt you aren’t certain you owe, you may send a debt validation letter to the debt collector.
This letter puts the burden of proof on your creditors in order for them to show you the details about any debt you may owe.
The FDCPA also gives you rights concerning when and how frequently a debt collection agency may contact you and what they are permitted to say when they’re talking to you.
Fair Debt Collection Practices Act Violations
The FDCPA outlines what debt collection agencies can and cannot do. A third-party debt collector may not do any of the following while attempting to collect a debt:
- Attempt to collect more than the debt you owe. Some debt collectors try to tack on additional fees that are not detailed in your original lending agreement, which is illegal.
- Call repeatedly at all times of the day. According to the law, creditors cannot call you between 8 a.m. and 9 p.m., or at other times when they know it would be inconvenient for you.
- Use abusive or intimidating language. Making insults or threats of physical violence over the phone violates the FDCPA.
- Inform outside individuals of the debt you owe. Debt collectors can only share details of your debts with legal advisors and close family members such as a spouse or parent (if you are under 18). In addition, they may only contact outside sources to try and locate you, but they may only contact the outside source one time.
- Ignore your debt validation request. Debt collectors may not continue to try and collect debts after they receive a debt validation letter. They must respond to the letter before continuing collection attempts.
Fair Debt Collection Practices Act Complaints
Despite the protections guaranteed by the FDCPA, debt collectors violate the law regularly. According to the FTC’s annual report on the Fair Debt Collection Practices Act, more than 100,000 complaints were filed against debt collection agencies.
The following were the primary complaints against debt collection agencies:
- Harassing the alleged debtor or others.
- Demanding a larger payment than is permitted by law.
- Threatening dire consequences if the consumer fails to pay.
- Impermissible calls to consumer’s place of employment.
- Revealing alleged debt to third parties.
- Failing to send required consumer notice.
- Failing to verify disputed debts.
- Continuing to contact a consumer after receiving “cease communication” notice.
If a debt collector has attempted any of the behaviors listed above with you, they have broken the law and should pay the price. You can inform the Consumer Financial Protection Bureau (CFPB) or the Federal Trade Commission (FTC) of any violations by submitting a complaint. You may also consider contacting your state attorney general’s office.
Suing a Debt Collector, Original Creditor, or Credit Bureau in Small Claims Court
As previously mentioned, the FDCPA allows you to take them to court and win money. As an informed consumer who knows your rights, it’s important to keep them honest by taking legal action against them when your rights have been violated. Each violation is a $1,000 fine that is rewarded to you.
In addition, suing them can help bring about change and make other people’s lives easier. The more people that sue them, the more likely they are to stop breaking the law. If everyone took action when their rights were violated, these companies would lose a fortune in legal disputes.
Reasons for Suing the Original Creditor
- They reporting inaccurate information on your credit report.
- After you dispute the debt, they fail to report as “disputed”.
- They pull your credit report without permissible purpose.
Reasons for Suing a Credit Bureau
- They refuse to correct information after being provided proof.
- They re-report an item that’s been removed from your credit report without notifying you in writing within five days.
- They fail to respond to your written dispute within 30 days (a 15 day extension may be granted if they receive information from the creditor within the first 30 days).
Reasons for Suing a Debt Collector
- The debt collector tries to be both the purchaser of an account or the assignee. It’s one or the other.
- They misrepresent themselves or the debt they are attempting to collect on.
- The debt collector tries to re-age your account by updating the date of last activity on your credit report to keep negative information on your account longer.
- The debt collector fails to report a disputed debt to the credit bureaus.
- They do not validate a debt yet continue collection activity by filing for a judgment. Debt collectors are also not allowed to call or write to you while the debt is in the validation process.
- They still call you even after you’ve sent them a cease and desist letter.
- The debt collector continues to report a debt to the credit bureaus that they have not validated.
- They call you before 8 am or after 9 pm or if they call you at work.
- The debt collector calls your friends, neighbors, relatives of any third party about your debt. They can only communicate with your attorney, credit reporting agency, the creditor, the attorney of the creditor, or the attorney of the debt collector.
- The debt collector harasses you or uses abusive language.
- They threaten to garnish your wages.
There are other reasons that you can sue a creditor, credit bureau, or collection agency. Seek legal advice or call Lexington Law Firm for a free credit consultation and speak with a paralegal at 1 (800) 220-0084 if you believe they are violating your rights.