Stop FDCPA Violations
The Federal Trade Commission (FTC) oversees and regulates violations of the Fair Debt Collection Practices Act (FDCPA), which is a law intended to protect consumers from potentially abusive and harassing behaviors of creditors out to collect a debt. Each year, the FTC issues a report to Congress regarding the types of FDCPA violations that consumers have filed against creditors, as well as the methods that the agency has used to enforce the law. In the 2012 FDCPA Annual Report, the following were the most common consumer complaints filed against creditors (in order of most common to less common):
- Harassment of the debtor by the creditor – More than 40 percent of all reported FDCPA violations involved incessant phone calls in an attempt to harass the debtor. While about 14 percent of all FDCPA violation reports alleged that creditors used profane or abusive language when attempting to collect a debt, nearly 10 percent of these claims were related to creditors calling debtors between 9 P.M. and 8 A.M.
- Demands for monetary amounts that are not contractually legal – Nearly 40 percent of all reported FDCPA violations involved creditors who were trying to collect monetary amounts that were greater than the amount that the debtor actually owed. About 8 percent of these claims involved creditors allegedly demanding excessive, illegal interest, fees or other expenses.
- Failure to send the consumer a written notice of the debt – More than 26 percent of all reported FDCPA violations were related to creditors failing to send debtors a written notice of the debt, which should legally include the official name of the creditor, the amount of debt owed and a notification that the debtor has the right to dispute the debt in question.
If you believe that you have suffered from abusive creditor practices, the FTC and the Consumer Financial Protection Bureau (CFPB) have toll-free numbers, as well as online forms, through which consumers can file complaints. The FTC and CFPB take these complaints seriously and strongly encourage consumers to stand up for their rights and file any complaints they may have.
The original post is titled Most Common Violations of the Fair Debt Collection Practices Act , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
© American Bankruptcy Institute. All rights reserved. ABI is a (501)(c)(3) non-profit business (52-1295453)
FAQs
They can't make false statements, misrepresent themselves, or misrepresent any aspect of your debt. The most common violations reported to the CFPB in this category include: False representation about the amount of the debt (81%) Impersonation of an attorney, law enforcement officer, or government official (13%)
Which of the following is an FDCPA violation? ›
Falsely represent the character, amount, or legal status of the debt, or of any services rendered, or compensation the collector may receive for collecting the debt. Falsely represent or imply that the collector is an attorney or that communications are from an attorney.
What does the Fair Debt Collection Practices Act ensure ________________? ›
“The FDCPA broadly prohibits a debt collector from using 'any false, deceptive, or misleading representation or means in connection with the collection of any debt.
What is prohibited by the Fair Debt Collection Practices Act? ›
Under this Act (Title VIII of the Consumer Credit Protection Act), third-party debt collectors are prohibited from using deceptive or abusive conduct in the collection of consumer debts incurred for personal, family, or household purposes.
What fines might occur for violation of the FDCPA? ›
The court can award these damages if the consumer proves the collector violated the FDCPA, but the consumer does not have to prove that the violation caused any harm. This $1,000 is per lawsuit—not per violation—so if the creditor violates the FDCPA once or multiple times, the consumer still only collects up to $1,000.
What are four practices that collectors are prohibited from doing under the FDCPA? ›
Harassment and Abuse
use obscene, profane, or abusive language. publish your name as a person who doesn't pay bills (child support collection agencies are exempt from this restriction in some states) list your debt for sale to the public. call you repeatedly, or.
What's the worst a debt collector can do? ›
The worst thing they can do
If you fail to pay it off, the collection agency could file a suit. If you were to fail to show up for your court date, the debt collector could get a summary judgment. If you make an appearance, the collector might still get a judgment.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What is the 7 in 7 rule for debt collectors? ›
One of the most rigorous rules in their favor is the 7-in-7 rule. This rule states that a creditor must not contact the person who owes them money more than seven times within a 7-day period. Also, they must not contact the individual within seven days after engaging in a phone conversation about a particular debt.
What are the three things debt collectors need to prove? ›
In order to win a court case, a debt collector must prove that they have proper ownership of the debt, that you actually owe the debt, and that the amount they claim you owe is correct.
For example, if a collector were to call your phone repeatedly to annoy you, they would be in violation of the law. Additionally, a collector cannot threaten to harm you physically, publish a public listing with your name on it or use profanity.
What is the notice required by the Fair Debt Collection Practices Act? ›
The FDCPA requires collection agencies to give consumers specific information in its first communication, which is generally called a "debt validation notice," including: the amount of the debt. the name of the creditor to whom the debt is currently owed.
What are two things that debt collectors are not allowed to do? ›
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
What not to say to debt collectors? ›
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
Can you sue a debt collector for lying? ›
Importantly, people can sue debt collectors who break the law by lying or providing wrong information. The Consumer Financial Protection Bureau is the administrator and a primary enforcer of the Fair Debt Collection Practices Act.
What are three things debt collectors are prohibited from doing? ›
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take. They also cannot make repeated calls over a short period to annoy or harass you.
What is a demand letter from the Fair Debt Collection Practices Act? ›
Fair Debt Collection Practices Act
A demand letter is the first formal step in collecting a debt. It clearly lays out the amount owed and the circ*mstances that led to it. Sending a debt collection letter makes it clear that you are serious about collecting on the debt.
Stop FDCPA Violations