The fair debt collection practices act helps us to fight unethical and illegal ways to collect dues from the borrowers.
In layman's terms, for you this act simply means stopping the unfair and unethical means of collecting your dues.
The economic disaster has touched each of our lives.
In an era of globalization, many of us have started using plastic money without thinking of its far reaching consequences.
In our effort to enjoy luxurious lives, an overspending beyond our means has led one to fall in arrears.
This has created havoc in our lives.
The fair debt collection practices act (FDCPA) is a consumer credit protection act.
This act is incorporated to stop harsh methods of collecting dues from the defaulters.
By this act, fair practices of conducting business are set up for the benefit of both the lenders as well as the consumers.
The rights of the consumers are protected when this act is followed.
Violation of this act can bring forth a penalty.
It also provides suitable remedies which can be followed.
The fair debt collection practices act prohibits unethical methods of collecting payments from the borrowers.
This act stipulates certain time for making phone calls for collecting your dues.
Beyond the permissible time is strictly prohibited.
The collection agencies should stop further communication after the defaulters have instructed them in writing that they are unable to make repayments and hence they should stop demanding from them.
This act also stops the lender from chasing the defaulter at his place employment after being specifically instructed not to do so.
The collection agency is also advised not to harass any borrower who has appointed an attorney to represent him.
The attorney has to be consulted with regard to the repayments which are due.
This act also prohibits the collection agency to deceitfully claim dues by imposing himself as a law enforcement officer.
Publishing a defaulters name or address on a bad debt list is also forbidden.
Communication with abusive language is not permissible at all.
Legal action cannot be enforced upon those who are already facing financial crisis.
For you the act should provide proper identification of the lenders.
The consumers should be made aware of their rights for disputing debts.
Providing verification for the owed amount is absolutely necessary.