The fair debt collection practices act - Essay Example

The Fair Debt Collection Practices Act “The FDCPA, or Fair Debt Collection Practices Act of 1977, was introduced to the United s by the FederalTrade Commission. The FTC, as well as Congress, saw a need to protect consumers from third party debt collectors and agencies” (FDCPA, 2009). It has been cited that there were a lot of abusive and decisive acts from debt collectors which results to various problems such that of bankruptcy, marital problems, loss of jobs, other personal instabilities and invasion of privacy.

The Act prohibits the following abusive and deceptive conducts on collecting debts. First is hours for phone contact, contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time is prohibited in respect to private time of the person to be collected. Next is failure to cease communication upon request, communicating with consumers in any way after receiving written notice that said consumer wishes no further communication or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted.

This is in accordance to what has been stated in the written notice which is therefore considered as a mutual understanding between two parties. Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number. Such act is indeed an act that goes beyond the realms of the collection process as it breaks through the rules of decency and formality. Communicating with consumers at their place of employment after having been advised that this is unacceptable or prohibited by the employer.

All company duly uphold certain rules and regulations among their employees and anyone who still insist of getting through these companies in order to collect is highly prohibited by this law. Contacting consumer known to be represented by an attorney. Since the party already has an attorney to handle the case, the collector must observe that all concerns are to be directed to the attorney involved. Communicating with consumer after request for validation has been made. Communicating with the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer's written request for verification of a debt made within the 30 day validation period (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor's name and address.

Communicating with consumer after request for validation has been made. Communicating with the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer's written request for verification of a debt made within the 30 day validation period (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor's name and address. This is a protection for the payees under the laws of their agreement to pay at a certain time and place.

Misrepresentation or deceit, which is, misrepresenting the debt or using deception to collect the debt, including a debt collector's misrepresentation that he or she is an attorney or law enforcement officer is highly unacceptable as it evidently shows an act to deceive payees. Publishing the consumer's name or address on a "bad debt" list is also not accepted as it is one way of invading and dragging the name a bad name for the payee. Seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law and seeking unjustified amounts, which would include demanding any amounts not permitted under an applicable contract or as provided under applicable law.

Threatening arrest or legal action that is either not permitted or not actually contemplated and abusive or profane language used in the course of communication related to the debt is highly prohibited as it is against the laws of human respect. Communication with third parties revealing or discussing the nature of debts with third parties (other than the consumer's spouse or attorney) is prohibited as collection agencies are allowed to contact neighbors or co-workers but only to obtain location information.

Disreputable agencies often harass debtors with a "block party" or "office party" where they contact multiple neighbors or co-workers telling them they need to reach the debtor. Contact by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any language or symbol, other than the debt collector’s address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

Reporting false information on a consumer’s credit report or threatening to do so in the process of collection. “Many Americans have fallen behind on their credit card, mortgage, and/or car payments because they have experienced some form of financial difficulty. This causes stress on the individual, as well as family and friends that are affected. To make matters worse, collection agencies are making harassing collection calls about past-due accounts on a daily basis. These agencies use fear tactics on vulnerable people for one purpose: to make money” (CTK, 2011).

Kerry Selfridge, “Fair Debt Collection Practices Act (FDCPA - part 1)” November 2, 2009, Retrieved May 2, 2011 from http://www.examiner.com/debt-in-national/fair-debt-collection-practices-ac-fdcpa-part-1 CTK, “The Reason for Debt Harassment”, March 23, 2011, Retrieved May 2, 2011 from http://www.creditlaw.com/reasons-for-debt-harassment