Stop FDCPA Violations
The Federal Trade Commission (FTC) oversees and regulates violations of the Fair Debt Collection Practices Act (FDCPA), which is a law intended to protect consumers from potentially abusive and harassing behaviors of creditors out to collect a debt. Each year, the FTC issues a report to Congress regarding the types of FDCPA violations that consumers have filed against creditors, as well as the methods that the agency has used to enforce the law. In the 2012 FDCPA Annual Report, the following were the most common consumer complaints filed against creditors (in order of most common to less common):
- Harassment of the debtor by the creditor – More than 40 percent of all reported FDCPA violations involved incessant phone calls in an attempt to harass the debtor. While about 14 percent of all FDCPA violation reports alleged that creditors used profane or abusive language when attempting to collect a debt, nearly 10 percent of these claims were related to creditors calling debtors between 9 P.M. and 8 A.M.
- Demands for monetary amounts that are not contractually legal – Nearly 40 percent of all reported FDCPA violations involved creditors who were trying to collect monetary amounts that were greater than the amount that the debtor actually owed. About 8 percent of these claims involved creditors allegedly demanding excessive, illegal interest, fees or other expenses.
- Failure to send the consumer a written notice of the debt – More than 26 percent of all reported FDCPA violations were related to creditors failing to send debtors a written notice of the debt, which should legally include the official name of the creditor, the amount of debt owed and a notification that the debtor has the right to dispute the debt in question.
If you believe that you have suffered from abusive creditor practices, the FTC and the Consumer Financial Protection Bureau (CFPB) have toll-free numbers, as well as online forms, through which consumers can file complaints. The FTC and CFPB take these complaints seriously and strongly encourage consumers to stand up for their rights and file any complaints they may have.
The original post is titled Most Common Violations of the Fair Debt Collection Practices Act , and it came from Oregon Bankruptcy Lawyer | Portland, Salem, and Vancouver, Wa .
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FAQs
Harassment of the debtor by the creditor – More than 40 percent of all reported FDCPA violations involved incessant phone calls in an attempt to harass the debtor.
What is the most common violation of the FDCPA? ›
Harassment of the debtor by the creditor – More than 40 percent of all reported FDCPA violations involved incessant phone calls in an attempt to harass the debtor.
What is a violation of the Fair Debt Collection Practices Act? ›
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using abusive, unfair, or deceptive practices to collect debts from you, including: Misrepresenting the nature of the debt, including the amount owed. Falsely claiming that the person contacting you is an attorney.
Which of the following is illegal under the Fair Debt Collection Practices Act? ›
The law makes it illegal for debt collectors to harass debtors in other ways, including threats of bodily harm or arrest. They also cannot lie or use profane or obscene language. Additionally, debt collectors cannot threaten to sue a debtor unless they truly intend to take that debtor to court.
What's the worst a debt collector can do? ›
Debt collectors are not permitted to try to publicly shame you into paying money that you may or may not owe. In fact, they're not even allowed to contact you by postcard. They cannot publish the names of people who owe money. They can't even discuss the matter with anyone other than you, your spouse, or your attorney.
What are four practices that collectors are prohibited from doing under the FDCPA? ›
Debt collectors cannot harass or abuse you. They cannot swear, threaten to illegally harm you or your property, threaten you with illegal actions, or falsely threaten you with actions they do not intend to take.
What does the FDCPA not cover? ›
The FDCPA applies only to the collection of debt incurred by a consumer primarily for personal, family, or household purposes. It does not apply to the collection of corporate debt or debt owed for business or agricultural purposes.
What is the 11 word phrase to stop debt collectors? ›
If you are struggling with debt and debt collectors, Farmer & Morris Law, PLLC can help. As soon as you use the 11-word phrase “please cease and desist all calls and contact with me immediately” to stop the harassment, call us for a free consultation about what you can do to resolve your debt problems for good.
What types of activity are forbidden by the Fair Debt Collection Practices Act? ›
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.
What are two protections provided by the Fair Debt Collection Practices Act? ›
The FDCPA also provides, for example, that debt collectors may not harass or annoy debtors, may not threaten debtors with arrest, and may not threaten legal action unless litigation actually is being contemplated.
By paying the collection agency directly, the notification of the debt could stay on your credit report longer than if you attempt to use another option, like filing for bankruptcy. When institutions check your credit report and see this information on it, it may harm your ability to obtain loans.
What debt collectors don't want you to know? ›
Debt collectors don't want you to know that you can make them stop calling, they can't do most of what they tell you, payment deadlines are phony, threats are inflated, and they can't find out how much you have in the bank. Furthermore, if you're out of state, they may have no legal recourse to collect.
How long before a debt becomes uncollectible? ›
Statute of limitations on debt for all states
| State | Written | Oral |
|---|
| Alaska | 6 years | 6 |
| Arizona | 5 years | 3 |
| Arkansas | 6 years | 3 |
| California | 4 years | 2 |
46 more rowsJul 19, 2023
Don't provide personal or sensitive financial information
Never give out or confirm personal or sensitive financial information – such as your bank account, credit card, or full Social Security number – unless you know the company or person you are talking with is a real debt collector.
How do you outsmart a debt collector? ›
You can outsmart debt collectors by following these tips:
- Keep a record of all communication with debt collectors.
- Send a Debt Validation Letter and force them to verify your debt.
- Write a cease and desist letter.
- Explain the debt is not legitimate.
- Review your credit reports.
- Explain that you cannot afford to pay.
Offer a Lump-Sum Settlement
Some want 75%–80% of what you owe. Others will take 50%, while others might settle for one-third or less. If you can afford it, proposing a lump-sum settlement is generally the best option—and the one most collectors will readily agree to.
What is the number one reason why debt collectors get sued? ›
Debt collectors engaging in harassment (usually with repeated calls) or using abusive language. Debt collectors threatening to contact a third party about your debt (such as a friend, family member, or employer) or otherwise improperly share information about your debt publicly.
Can you sue a creditor for violating the FDCPA? ›
If you think a debt collector has violated the FDCPA, you can sue them for damages. If you prove a violation occurred, you may be awarded $1,000 in damages, plus additional compensation for any actual harm they caused. If you win, the collector may also be responsible for paying your lawyer fees and costs.
What is the new FDCPA rule? ›
The amended FDCPA allows debt collectors to use newer technologies, such as email and text messages, to communicate with consumers regarding their debts, subject to certain limitations, which protect consumers against harassment or abuse.
What are the statutory damages for violation of FDCPA? ›
Statutory damages are up to $1,000 per case. Not per violation, per case. This is commonly misunderstood and many people are under the impression that they can recover $1,000 per violation, but the law is per case. The FDCPA provides for reasonable attorney's fees.
Stop FDCPA Violations