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.