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Terms that begin with F
Fair Debt Collection Practices Act (FDCPA)
The Fair Debt Collection Practices Act (FDCPA) is a statue which was added in 1978 to the Consumer Credit Protection Act. This Act was designed to prohibit debt collectors from unfair, deceptive, or abusive practices when collecting debts, to support fair debt collection, and provide consumers with a way to have access to and dispute any discrepancies being reported on their credit report. The FDCPA provides collection guidlines for debt collectors, the rights of consumers who are involved in debt collection, and the penalties for improper collection practices.
The FDCPA applies to any debt collector but is typically upheld to third party debt collection companies and attorneys (since 2006) who are trying to collect a debt on behalf of an original creditor, and does not apply to the original creditor. The Act specifically restricts the coverage to an individual, family, or household debt. It is not cover business debt.
The Act prohibits collectors from deceptive or abusive practices such as:
The FDCPA also requires debt collectors to:
The FDCPA is enforced by the Federal Trade Commission under the Federal Trade Commission Act. Debt collectors found to have violated these laws may be subject to civil lawsuits. However, if the court deems the consumer to have filed the law suit in bad faith or to provide harassment the courts may allow compensation to the debt collectors for attorney's fees etc.
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