The Fair Debt Collections Practice Act, (FDCPA), was put in place by congress to protect consumers from abusive, unethical and deceptive practices by third-party debt collectors while trying to collect past-due debts. Debt collectors can be reported to the Attorney General's office or the Federal Trade Commission if they violate the rules and regulations of the FDCPA.
Phone Guidelines
The FDCPA states that third-party debt collectors can call past-due debtors from the hours of 8:00 am until 9:00 pm. If a call takes place outside of these hours it is a violation of the FDCPA. Any violation of this law makes third-party debt collectors subject to fines and penalties and even legal action. If a debtor's employer does not allow them to receive calls at work the debt collector is not allowed to call once they have been told to stop by the debtor.
Statute Of Limitations
If the statute of limitations has run out on a debt a debt collector can no longer pursue legal action. Collection activities are limited to phone calls and written correspondence. There are collection agencies that will attempt legal action after the statute of limitations has passed. If you are summoned to court you need to show up and provide proof to the court that the statute of limitations has run out. Each state has its own time frame regarding the statute of limitations.
First Party
The FDCPA act does not apply to first-party debt collectors, which are usually organizations associated with the original creditor such as an in-house collection department. Even though they are not governed by the rules and regulations of the FDCPA most will comply with the established guidelines to avoid consumer complaints and lawsuits.
Threats
Debt collectors cannot make threats that they do not intend to carry out or don't have the authority to carry out. For example, if a debt collector threatens to pursue legal action and then a judgment but they have no intention of doing so, it is a violation of the FDCPA. Once they have informed you that they will start legal action they should begin the process.
Misrepresentions
According to the FDCPA a collection agency cannot misrepresent themselves when they collect past due debts. They cannot pretend to be calling from an attorney's office or from a government agency. Collection agencies must not give the impression that they are a form of law enforcement.
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