The Fair Debt Collection Practices Act (FDCPA) is a federal law that governs how debt collectors can interact with consumers. The law primarily applies to third-party debt collectors, such as collection agencies; however, it’s critical that all creditors understand the scope of the law.
If there’s ever any doubt about whether this applies to a specific creditor, it’s best to err on the side of caution and abide by the law. Typically, this act doesn’t apply to the original creditor.
Rules for interacting with debtors
Whether you’re directly collecting or managing a third party, here’s what to keep in mind when dealing with consumers:
- No harassment or abuse: Repeated calls, threats, profanity, or public shaming are all prohibited. Communications must remain professional.
- Timing and frequency matter: Contact can’t be made before 8 a.m. or after 9 p.m. local time, and excessive or repeated calls can be considered harassment.
- Honesty is required: Misrepresenting the amount owed, falsely claiming legal action, or pretending to be someone else, such as a government official, is strictly forbidden.
- Respect consumer rights: Debtors have the right to request verification of the debt, dispute it, or ask that communication stop. If a debtor sends a written request for no further contact, you and your agents must comply.
Keeping clear records of all communications and other account activity may help to protect your interests. If a consumer files a complaint about misrepresentation, harassment or violations of the FDCPA, the documentation may help to dispute those claims. It may be beneficial to work with someone familiar with these matters if you’re ever accused of failing to comply with applicable laws.