Every day credit contracts and obligations are entered into by individual and companies alike in Ohio. While frequently debtors are able to repay their obligations as promised, there are times when this does not happen. In these situations, creditors may reach out to debtors in an attempt to receive the amounts due. However, in attempting to collect debts, you shoudl know that creditors are bound by legal requirements that dictate what they can and cannot do and how they may or may not treat consumers.
The Consumer Finance Protection Bureau explains that these regulations are governed by the Fair Debt Collection Practices Act. Entities that are covered by the FDCPA include attorneys that may be collecting debts, collection agencies or debt buyers. A debt buyer is a person or company that has paid another company to buy debts with the intention of attempting to collect on those debts.
The FDCPA governs actions related to personal debts including those related to a household, health and medical bills, unsecured debt like credit cards and secured debt like mortgages. It is important for you to understand that business debts are not covered by the Fair Debt Collection Practices Act. The law outlines when or where creditors may attempt to contact a debtor and indicates that when a debtor is working with an attorney, creditors must direct communication to the attorney not the consumer.
This information is not intended to provide legal advice but is instead meant to give Ohio residents and businesses an overview of the Fair Debt Collection Practices Act.