Understanding The Fair Debt Collection Practices Act

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Understanding the Fair Debt Collection Practices Act

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Understanding The Fair Debt Collection Practices Act

  1. 1. Understanding the FairDebt Collection Practices Act<br />By Michelle Dunn<br />www.MichelleDunn.com<br />
  2. 2. According to the FTC<br />In 2009 therewere 32,076 complaints about in-house collectors<br />In 2008 therewere 26,652 complaints about in-house collectors<br />A difference of 5,424 complaints<br />
  3. 3. According to the Better Business Bureau:<br />DebtCollectorsresolve 85% of the complaints receivedagainstthem, whichissignificantlyhigherthananyotherindustry.<br />
  4. 4. Debtscovered by the FDCPA:<br />Personaldebts<br />Familydebts<br />Householddebts<br />Personalcreditcards<br />Auto loans<br />Medical bills<br />Mortgage<br />
  5. 5. How bill collectors can contact debtors:<br />In person<br />By mail<br />By telephone<br />By telegram<br />By fax<br />
  6. 6. The FDCPA only applies to:<br />Consumer debts<br />Mortgage<br />Auto loan<br />Medical bills<br />Credit card bills<br />utilities<br />Third party debt collectors – NOT original creditors<br />
  7. 7. Last year 4,162 consumers complained about collectors calling them at work. <br />The law instructs collectors not to call consumers at work if the consumer has stated their employer prohibits such contacts and such contacts may put the employee’s job at risk.<br />
  8. 8. The FDCPA requires collectors to:<br />Identify themselves as a debt collector<br />Give the name & address of the original creditor<br />Notify the consumer of their right to dispute the debt<br />Provide verification of the debt<br />File a lawsuit in a proper venue<br />Check time zones before calling debtors<br />Have written polices in place<br />Have a compliance plan and a compliance officer to oversee that plan<br />
  9. 9. Complaints received by the FTC:<br />88,190 FDCPA complaints about 3rd party collectors in 2009<br />78,925 FDCPA complaints about 3rd party collectors in 2008<br />
  10. 10. Resources<br />www.ftc.gov<br />www.credit-and-collections.com<br />www.encyclopediaofcredit.com<br />www.FDCPA.biz<br />

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