Federal Debt Collection Practices Act (FDCPA)

Question 1

FDCPA

Answer 1

Prohibits debt collector from using unfair, abusive, or outrageous practices in attempting to collect a debt

Question 2

Debt Collectors

Answer 2

Any person who tries to collect the debt owed to another person

EXCLUDED: creditors

Question 3

Covered Debts

Answer 3

(1) Personal
(2) Family
(3) Household

Question 4

Prohibited Contact with Debtor

Answer 4

(1) No contact with debtor before 8:00 am or after 9:00 pm
(2) No direct contact with debtor if debt collector knows debtor is represented by an ATTORNEY
(3) No contact with debtor AT WORK if debtor’s work prohibits contact by debt collectors
(4) No contact if debtor NOTIFIES debt collector in writing that debtor refuses to pay debt or wishes debt collector to cease further communication
(5) No contact with THIRD PARTIES, except to learn where debtor is located

Question 5

Prohibited Acts by Debt Collector

Answer 5

HUF

(1) Harassment
(2) Unfair practices
(3) False statements

Question 6

Validation of Debt

Answer 6

Within 5 DAYS of initial communication with debtor, debt collector must send debtor written notice containing:

(1) Amount of debt;
(2) Name of creditor; and
(3) Statement that the debt will be ASSUMED VALID unless debtor disputes validity of the debt within 30 DAYS of receipt of notice

Question 7

Penalty for Violation

Answer 7

Action brought by individual = up to $1,000 in actual damages

Class action = up to $500,000 in actual damages or 1% of the debt collector’s net worth (whichever is less)

Question 8

Statute of Limitations

Answer 8

Action must be brought within 1 YEAR of violation