FDCPA: Coverage, Definitions and Restrictions

Question 1

To whom does the Fair Debt Collections Practices Act apply (who’s covered) and who is exempt from the rule(s) (who’s not covered)?

Answer 1

Covered:
Debt collectors of consumer debt

Not covered:
Officers or employees of the bank, in the name of the bank, collecting debts for the bank itself, or for the parent company, or for other companies in the holding company

Question 2

What is the definition of “consumer” under the FDCPA?

Answer 2

Any natural person, whether living or deceased, obligated or allegedly obligated to pay any debt. “Consumer” can include the consumer’s spouse, parent (if consumer is a minor), legal guardian, executor of the consumer’s estate (if consumer is deceased), and a confirmed successor in interest

Question 3

Which types of consumer debt collection are covered under the FDCPA?

Answer 3

Applies only to collection of obligations incurred by consumers for personal, family, or household purposes. It does NOT apply to the collection of corporate debt or debt owed for business or agricultural purposes.

Question 4

Who is considered a “debt collector” under the FDCPA?

Answer 4

When debt is “owed to others”
1. Principal business is to collect debts by phone, mail or similar means
2. Regularly collects debts
3. Collects debts under a third-party name

Question 5

What are the restrictions imposed on debt collectors under the FDCPA?

Answer 5

Debt collectors may not:
- use profanity , abuse or harass, threaten bodily or property harm or prosecution
- contact the debtor’s employer except to obtain information concerning the whereabouts of the debtor
- telephone the debtor after 9pm or before 8am unless debtor has consented to such contact

Question 6

What is the FDCPA restriction that pertains to call frequency?

Answer 6

Debt collectors may not call a consumer more than seven times within seven consecutive days or within a period of seen consecutive days after having had a telephone conversation

Question 7

What are the exclusions to the restricted call frequency under the FDCPA?

Answer 7

• Calls for which the debtor gave prior consent
• Calls that do not connect to the dialed number
• Call placed to specific professional persons, like the consumer’s attorney

Question 8

What are the communication restrictions for debt collectors when emailing a consumer?

Answer 8

Communication with consumers via known work email address, except
- when the email address was previously used to communicate with the debt collector and the consumer has not opted out, and
- if prior consent was given and has not been withdrawn

Question 9

What is the timing requirement for a debt collector to send the consumer a written debt validation?

Answer 9

Within 5 calendar days of the initial communication, unless the required information was included in the initial communication