The Truth About Fair Debt Collection Practices Act, and You
The Fair Debt Collection Practices Act (FDCPA) is an ever-changing body of law that applies to every land and everything in it. The body has 16 sections, each named for a section of the U.S. Code. These sections cover what the Federal Trade Commission (FTC) writes about debt collection and other consumer protection in the codes. Many people are not aware that theFair Debt Collection Practices Actis in existence, for there is very little published information about it. The reason is, to solely focus on consumer protection it was written to offer guidelines to collectors and other creditors and utilities in the interpretation and application of the body authority. 성범죄 변호사
The basic goal of the FDCPA is to protect consumers by streamlining the collection of consumer debts. The agency aims to preserve, improve and promote fair practices in the collection of consumer debts. Consumers having debts with certain creditors are exempted from reporting to the FDCPA, whereby they need not provide details of their debts to third parties. Creditors and collectors must comply with the guidelines set forth by the FDCPA, and consumers with specific debts are exempted from the application of the FDCPA’s other provisions.
The fair debt collection practices act applies to both consumer debts with certain debts and creditor debts. Under the latter, the FDCPA has a stronger application. An important section of the FDCPA offers protection to creditors.
The fair debt collection practices act incorporates the FDCPA and other laws that deal specifically with consumer debt transactions. For instance, with certain creditor debts, the FDCPA applies if the consumer has not paid his bills. Such collection costs are not allowed under the FDCPA. However, with consumer debts, if the creditor or collector gets a judgment, or sues a consumer, or a judgment lien has been or will be obtained, he can recover the costs of the court proceeding in an attempt to recover his funds. The FDCPA does not set out a specific rule governing the recovery of court costs, and the option exists for a creditor or collector to deduct the court costs from a debtor’s wages or to attach a property of the debtor in order to satisfy a judgment. This is a matter on the approach of the creditor or collector.
This is not the end of the scope of the fair debt collector practices act. Some further rules and restrictions on creditors have been laid down. For instance, if a creditor pays a judgment earlier than it is legally due, then the payment is taxable. The necessary costs he has to pay are not allowed to constitute deductions from wages, and the court costs related to a legal proceeding against a debtor are not allowed as a deduction from the debtor’s wages. Furthermore, if he pays an illegal fee, the deduction will be prohibited. Furthermore, if the debtor has in good faith exercised no right to dispute the amount, then he cannot appeal the rules laid down by the FDCPA. As a consumer protection, this is a welcome relief for the confused and harassed debtors.
The fair debt collection practices act is just an administration document and official policies on the fair practices handling of consumer debts. It does not cover every debt and smaller ones are also covered. As you can see from the body of it, there is a great deal of substance in this hardly lengthy body of laws.