How the FDCPA Impacts Creditors

Having trouble collecting your delinquent accounts receivables? If you are a company and you want to stay in business, one of the first things that you need to do is carefully manage your accounts receivables. Moreover, if you are having difficulty collecting a consumer debt against an individual, you must also understand how the FDCPA impacts creditors. 

What is the FDCPA?

The Fair Debt Collection Practices Act (FDCPA) is a law that sets forth guidelines for the collection of consumer debts by collection agencies and collection attorneys. Additionally, it was meant to stop harassment of debtors by debt collectors. The FDCPA does not apply to business debts. Generally, it does not cover consumer collection by the original creditor. Many states have laws which are similar to the FDCPA. You should always know the debt collection laws of your state. Specifically, follow the link to see a good summary of debt collection practices in the state of Maryland.

What are examples of the types of consumer debt covered by the FDCPA?

1. Medical bills
2. Mortgage debt
3. Credit card bills
4. Retail transactions where credit is extended

The FDCPA applies to the above debts only if the debts are incurred for personal use. For example, the FDCPA would not apply to credit card bills used in a business.

What are some of the requirements of the FDCPA?

1. Phone calls must take place between 8 A.M. and 9 P.M. 
2. Debt collectors may not harass debtors.
3. Debt collectors cannot use unfair business practices to collect the debt.
4. Lastly, the FDCPA requires specific communication requirements with debtors.

The FTC website contains a list of the detailed FDCPA requirements.

Kind and Dashoff, LLC  is a law firm and a licensed and bonded collection agency. They understand how the FDCPA impacts creditors. In addition, they are experts at debt collection techniques and legal remedies in Maryland and Washington, DC.  They work hard to collect the money that is owed to you.