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What is the Fair Debt Collection Practices Act?

No matter what the state of the economy, consumer debt collection seems to be a common concern among consumers and businesses alike in Ohio. The law provides clear parameters governing how businesses may and may not approach consumers in their efforts to collect debts. It also protects businesses’ rights to collect debts.

The Federal Trade Commission explains that consumer debt collection in the U.S. is governed by the Fair Debt Collection Practices Act. It is important to note that this act does not govern debts incurred to run a business but only consumer debt. Items like auto loans, mortgages, medical debt, and credit card debt are covered by the FDCPA. The law is intended to prevent creditor harassment of debtors while giving creditors the ability to pursue debt collection.

Under the FDCPA, a consumer may request that a creditor cease contact efforts. This request must be made in writing and creditors must abide by the request. However, a company can still contact a consumer to inform them about further action that is being taken to collect the debt. The company can also contact the consumer to confirm receipt of the request to cease contact. Companies are prevented from discussing a debt with anyone other than the debtor although they can contact other parties in order to obtain phone numbers, addresses, or employment information about creditors.

If a consumer is represented by an attorney, the creditor must direct contact to that attorney. This information is not intended to provide legal advice but general information about laws covering debt collection practices in Oho.

 

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