In 1978, the Federal Trade Commission (FTC) passed the Fair Debt Collection Practices Act (FDCPA). The aim was to protect consumers from collectors who were abusive, fraudulent, or unjust in their practices.
Despite the fact that this statute has been in place for over 40 years, many borrowers are unaware of the leverage it provides them in unsecured debt disputes. Every year, the FTC submits a report to Congress detailing FDCPA violations brought by consumers against creditors.
This blog will list the most common FDCPA breaches.
Failure to Send Notices in Writing
Credit collection agencies must deliver written debt validation notices to borrowers within 30 days. Many people fail to do so, but they still get away with it.
These notices must legally include everything from the creditor’s name to the entire amount of debt owed. They should also mention the consumer’s right to contest the debt. The creditor’s case becomes weaker if the written notice is not sent.
Attempting To Collect Unlawfully Owed Amounts
Creditors often harass debtors for money that they don’t even owe. For example, the creditors may be threatening debtors to pay the amount even after collecting the amount owed under their contract.
The Fair Debt Collection Practices Act (FDCPA) prohibits creditors from collecting more money than they are owed. Excessive fees, illegal interest, and other charges are all considered violations of the legislation.
Illegal and Unethical Communication Techniques
Despite the FDCPA’s evident requirements addressing ethical communication standards, this is one of the most common breaches.
Creditors frequently contact or visit debtors at their homes or places of business to harass them. Furthermore, some creditors may even try to threaten and harass debtors using abusive language.
These practices are against the FDCPA, which prohibits creditors from calling debtors after 9 p.m. or before 8 a.m.
Sharing Confidential Information about the Debtor without Their Consent
Credit collection agencies often have access to a large amount of personal information about their customers and debtors. They are not permitted to disclose it to a third party without a written express agreement of the debtor.
They are only authorized to communicate information with the consumer’s attorney, creditor’s attorney, credit reporting agencies, or the consumer’s spouse or parents under very particular circumstances.