Consumer Lending Regs- The Fair Debt Collection Practices Act Flashcards
What was the fair debt collection practices act designed to prohibit?
It was designed to eliminate abusive and deceptive debt collection practices
List two circumstances in which a credit union’s employees become subject to the act?
If your credit Union regularly collects debt for other unrelated credit unions
If your credit Union employee collects debts using a name other than the credit unions
List the 4 basic provisions of the fair debt collection practices act
Limit your communication with member and others
Send a specific form of notice
Refrain from collection activity that’s considered deceptive or unfair
Refrain from furnishing forms that are unfair
Once you discover an attorney represents the member what restrictions are placed on your collection efforts?
If you obtain attorneys name and address you can only communicate with the attorney unless the attorney fails to respond within a reasonable period of time
When is a debt collector required to provide validation of debt?
With the initial communication regarding debt collection or within five days of that initial communication
Give examples of what would be considered harassment under this act?
Using or threatening to use violence
Using obscene or profane language
Publishing a list of members names who refuse to pay debts
Advertising a debt for sale to coerce payment
Allowing telephone to ring repeatedly with intent to annoy or harass member
Placing telephone calls without identifying yourself
What collection practices are prohibited?
Collecting amounts that are not agreed to in debt collection contract
Soliciting a post dated check so you can threaten to bring criminal charges
Accepting a post dated check post dated more than 5 days
Communicating by postcard
Making collect calls to member
Depositing or threatening to deposit a post dated check before it’s date
