History

• In 1977, both the House and Senate generated several reports regarding the activities of debt collectors. Consumer complaints ranged from harassing phone calls in the middle of the night to collectors calling employers and extreme collection tactics that involved threats of violence and harm. As the complaints mounted, it became evident that the Federal government needed to enact a law to protect consumers so on September 20, 1977, the FDCPA was signed into law.
  
  

Built-In Protection

• The FDCPA contains a very strict and specific set of rules by which debt collectors must abide. Each of these rules was carefully planned to protect the consumer from harassment, fraud and intimidation.
  
  

Validating a Debt

• One of the provisions of the FDCPA was the requirement that any debt be validated prior to the commencement of collection activities. As with other provisions, this one has specific guidelines. A collector must notify you in writing of the amount of the debt and the creditor to which it is owed. You then have 30 days to dispute this amount, ask for proof of the debt and to find out the name of the original creditor as many times debts are packaged and sold from one company to another.
  
  

Communication with Consumers

• Before the FDCPA a debt collector might call you at midnight demanding money or he might call your employer and tell them you were someone who wouldn’t pay your bills. In some cases, a collector might come to your home in person to demand payment. All of this was usually done on behalf of another party--generally the creditor to which you may or may not owe money. Once the law went into effect, telephone communications between you and a debt collector were limited to the hours of 8:00 am to 9:00 pm, and the collector could speak only to the debtor about the debt. Additionally, any written communications had to be between the debtor and collector only. No third-party communications are permitted.
  
  

Stopping Debt Collector Communications

• The FDCPA provides the consumer a way to cease all communications with a debt collector. In section 805, there are instructions on how to stop collectors from contacting you via mail or telephone. In general, it is advisable to notify the collector that you wish him to cease all communications with respect to collecting the debt in writing. Of course, this action can have consequences, and it is recommended that you contact the original creditor being represented to resolve the debt and any disputed amounts at the same time.
  
  

Civil Liability

• A debt collector that fails to comply with the FDCPA can face civil penalties as provided for in section 813. These fines range from a minimum of $1,000 for a single lawsuit up to $500,000 per instance for a class-action lawsuit. These amounts are determined by a court and are in addition to reasonable attorney’s fees and court costs.