Overview of Debt Collection Regulations
The Fair Debt Collection Practices Act (FDCPA) regulates debt collectors. The Federal Trade Commission (FTC) administers this 1978 law prohibiting abusive, unfair and deceptive collection practices. The FDCPA applies to personal, family and household debts like credit cards, car loans, medical bills, and mortgages. Debt collectors locate and contact people owing money. They negotiate payoff deadlines and payment plans.
Rights and Complaint Procedures
Debt collectors cannot contact family, friends, or employers. They cannot pressure certain courses of action or repayment terms you cannot afford. Collectors can only contact you during specific hours. Repeated contacts in one day are harassment. Collectors cannot falsely claim authority they lack. Strategies include phone calls to discuss balances and repayment options. Debt buyers purchase debt at a discount then seek to collect it. The debt collection industry is highly regulated by federal and state laws.
Legislative Process and Governance
The Legislative Process helps develop state and federal legislation about financial services and consumer protection. Commercial debt collection is governed by agency ethics. Creditors encourage the use of members of Commercial Collection Agency Association. Members can seize bank accounts and assets following standards used by members and creditors. People using business debt lack consumer protection.
Compliance and Reporting Procedures
Debt collection is governed by laws. The FDCPA defines debt collectors and regulates their activities. It prohibits harassment, deception, and unfair practices. Most complaints involve debt collectors. Consumers can report problems to attorney generals, the FTC, and the CFPB. When debt goes to collections varies. Unpaid bills may get reported in 3-6 months. Knowing regulations keeps creditors compliant. Calls received before 8 am or after 9 pm violate the FDCPA. If states have additional laws, those apply too.