Debt collection acts
What does the Debt Collection Acts do?
The collection of overdue debts these days is done by the debt collection agencies that are used by the creditors. However, in view of the legal hassles the debt collection agencies take to unfair and at times abusive debt collection practices. The consumer in this regard was helpless until some time ago but the Fair Debt Collection Practices Act of September 1977 has ensured that neither the consumer nor the debtor lose anything. The government in the year 2000 passed this act. The act authorizes the Federal Trade Commission to probe and deal with the complaints by the consumers where the agencies have violated the act.
The act has put certain guidelines for the creditors, the debt collection agencies, and also the consumer while dealing with the issue of overdue debts. The debt collectors who deal with debts that have been bought from other creditors and the time limit of such debts keep in check the unethical debt collection practices. Such debt collectors are called the scavenger debt collectors and they are the most dreaded ones among debtors.
There are several sections in the FDCPA that protect the consumers credit reputation and also protect them from the abusive and illegal debt collection practices of the debt collectors. With the tool of the FDCPA in hand, the consumer can sue the abusive debt collectors and also get compensation for the harassment.
The Sections of the FDCPA
The section 804 of the FDCPA details about the obtaining of information of the debtor. According to this section, the debt collector can seek information about the location of the debtor within the guidelines outlined. The collector has to reveal his identity while seeking information of the debtor and also at times may have to tell the name of their employer. During the process of inquiry, the collector cannot mention to the debtor that they owe any debt as this violates the law. When the enquiry is done, the collector can communicate with the debtor only through his attorney and cannot in any way directly approach the debtor.
Section 805 of the act states communication guidelines for the collectors. The debt collector cannot call the consumer at any inconvenient time unless agreed upon by the consumer. The place is considered while calling the consumer and they cannot call the debtor at their place of work when the employers do not allow such communication. If the attorney of the consumer fails to respond to the collector only in that case they can contact the consumer.
The 806 section of the FDCPA is the most important section. It firmly puts a check on the unethical practices of debt collection. A debt collector cannot in any way threaten, use abusive and insulting language in their debt collection efforts. The debt collector cannot as well use violent means in making the consumer pay the debts.
When the debt collector takes to false, unscrupulous means of debt collection, they are violating the section 807 of Misrepresentation of the FDCPA.
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