II. FEDERAL DEBT COLLECTION ACT

Question 1

federal + state

Answer 1

The federal law that regulates debt collection is known as the Fair Debt Collection Practices Act.

most case ask about state version

Question 2

Definition of “Debt Collector”

Answer 2

the FDCPA applies only to 3rd party debt collectors (collect for someone else) collecting a consumer debt which are debts for personal, family or household purposes

Applies to Attorneys: a lawyer who regularly collects consumer debt is subject to the act

Debt Collector Not Using Own Name
a creditor is usually not subject to the FDCPA; but using a different name subject the creditor to the liability under FDCPA

Question 3

Prohibited Communication With Debtor

5

Answer 3

1. Time and Place
   cannot call before 8am and after 9pm
2. Represented by an Attorney
   unless the attorney consents, cannot contact the consumer
3. Place of Employment
   once the colletor knows the employer prohibt calls by a collector, cant call the consumer at work
4. Communication With Third Parties
   collector may only communicate with consumer, not 3rd parties
   EXCEPT: to get the location of the debtor
5. Validation of Debts
   in the initial communication or within 5 days, collector must tell the consumer she has 30 days to dispute the debt
   if disputed, the collector must stop all collection efforts until the debt is verified

Question 4

Prohibited Conduct

Answer 4

The FDCPA prohibits debt collectors from engaging in harassment or abuse, making false or misleading representations, or engaging in unfair practices. A non-exclusive list.

anything, and Unfair or Unconscionable Practices is a broad catch-all

not limited to conduct that affects the consumer

Question 5

liability

Answer 5

The FDCPA may be enforced through a private cause of action or administratively.

1. Private Enforcement: 1 Year statute of Limitation
2. Liability
   A debt collector who fails to comply with the FDCPA is liable to any person in an amount equal to any ACTUAL DAMAGE (anything under common law) sustained by such person

a. Additional Liability statutory damage
In the case of any action by an individual the court may award additional damages not exceeding $1,000.

b. Attorneys’ Fees
consumer: same as the DTPA, reasonable and necessary, dollar amount hourly basis
D.: different from DTPA, case was brought in bad faith and for the purpose of harassment, may award attorneys’ fees in relation to the work expended and costs.

3. Relation to State Laws
   may violate both state and federal