The Fair Debt Collection Practices Act (FDCPA) regulates how third party debt collectors contact consumers regarding debts. According to the FTC, complaints against in-house collectors increased from 26,652 in 2008 to 32,076 in 2009. The FDCPA only applies to consumer debts such as credit cards, medical bills, and mortgages collected by third parties, not original creditors. It requires collectors to identify themselves, provide debt validation, and limits contacting consumers at work or inappropriate times.

1. Understanding the FairDebt Collection Practices ActBy Michelle Dunnwww.MichelleDunn.com

2. According to the FTCIn 2009 therewere 32,076 complaints about in-house collectorsIn 2008 therewere 26,652 complaints about in-house collectorsA difference of 5,424 complaints

3. According to the Better Business Bureau:DebtCollectorsresolve 85% of the complaints receivedagainstthem, whichissignificantlyhigherthananyotherindustry.

4. Debtscovered by the FDCPA:PersonaldebtsFamilydebtsHouseholddebtsPersonalcreditcardsAuto loansMedical billsMortgage

5. How bill collectors can contact debtors:In personBy mailBy telephoneBy telegramBy fax

6. The FDCPA only applies to:Consumer debtsMortgageAuto loanMedical billsCredit card billsutilitiesThird party debt collectors – NOT original creditors

7. Last year 4,162 consumers complained about collectors calling them at work. 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.

8. The FDCPA requires collectors to:Identify themselves as a debt collectorGive the name & address of the original creditorNotify the consumer of their right to dispute the debtProvide verification of the debtFile a lawsuit in a proper venueCheck time zones before calling debtorsHave written polices in placeHave a compliance plan and a compliance officer to oversee that plan

9. Complaints received by the FTC:88,190 FDCPA complaints about 3rd party collectors in 200978,925 FDCPA complaints about 3rd party collectors in 2008

10. Resourceswww.ftc.govwww.credit-and-collections.comwww.encyclopediaofcredit.comwww.FDCPA.biz