FROM:
HOLLEY CARNRIGHT
DATE:
FEBRUARY 27, 2017
RE:
PRESS RELEASE - THE FAIR DEBT COLLECTION PRACTICES ACT
The
Fair Debt Collection Practices Act (FDCPA) is the federal law that prohibits
collectors from using abusive, deceptive or unfair practices to collect money,
according to the Ulster County District Attorney’s Division of Consumer
Affairs. It also requires them to provide consumers with information about
themselves and the debt. In addition to making some collection activities
illegal, the FDCPA also gives consumers the right to verify that a debt is
valid and to dispute debts they don’t believe they owe.
Generally,
the FDCPA only governs third-party debt collectors – those who work on behalf
of the original creditor. A debt collector is defined as someone who regularly
collects debts owed to others. This includes collection agencies, lawyers who
collect debts on a regular basis, and companies that buy delinquent debts and
then try to collect them (debt buyers).
The
FDCPA does not apply to original creditors – those who initially extended the
credit or loan. The exception to this rule is a creditor that collects on its
own debts but under a different name, giving the impression of being a third
party. The law applies only to personal, not business-related debt.
For
a copy of the brochure on how the FDCPA restricts collectors and protects
consumers, contact Ulster County Consumer Affairs at 340-3260.
