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In a NutshellThe FDCPA is a federal law that protects debtors by preventing third-party debt collectors from engaging in harassment or unfair activities while trying to collect money. Here’s a list of the six most common violations of the FDCPA: - Attempting to collect debts you don’t owe - Sending written notifications with insufficient information about the debt - Taking or threatening to take legal action or other negative actions - Making false statements or misrepresenting themselves or the debt - Engaging in harassment (usually with repeated calls) or using abusive language - Threatening to contact a third party about your debt (such as a friend, family member, or employer) or to otherwise improperly share information about your debt publicly
The FDCPA is a federal law that prevents third-party debt collectors from engaging in harassment, deceptive practices, or unfair debt collection techniques.
The purpose of the FDCPA is to protect consumers from being abused or treated unfairly by debt collectors. It applies to consumer debts like credit card debt or medical bills. It does not apply to business debt.
Importantly, the FDCPA is targeted at third-party debt collectors. It generally doesn’t apply to original creditors (the person or business to whom you originally owed the debt).
The Consumer Financial Protection Bureau (CFPB) helps oversee and enforce the FDCPA. The CFPB fields complaints about FDCPA violations and helps consumers resolve issues with debt collectors who violate the law.
Fast Fact: The CFPB’s most recent data shows consumers filed almost 122,000 debt collection complaints (in 2021). [ 1 ]
Here is a list of the six most common FDCPA violations, according to the Consumer Financial Protection Bureau’s 2022 report:
Look out for these FDCPA violations and report debt collectors who engage in these practices.
This was the number one complaint the CFPB received in 2021. In fact, 56% of the CFPB’s debt collection complaints were related to debt collectors attempting to collect on a debt the consumer didn’t owe.
Here are some reasons people get contacted about debts they don’t actually owe:
If you receive calls or other communications from a collection agency demanding payment on a debt, verify, verify, verify. Also, check your credit report regularly! If you see a debt or a charge-off to collections that you don’t recognize, do your research and dispute the debt if you don’t owe it.
This is the second-most common FDCPA violation complaint. Under the FDCPA, debt collectors must provide you with a written notification (often called a validation notice) of the debt either before contacting you or within five days after first contacting you. This notice must also advise you of your legal right to dispute the debt within 30 days.
Of these complaints, 25% of people said they never received information regarding their legal right to dispute the debt. 75% of people said the written notice they received was “vague” and didn’t include enough information for the consumer to verify the debt.
If you receive a vague notice, know your rights and take action as soon as possible. You can always send a debt verification letter requesting more detailed information on the debt, including the name of the original creditor, the alleged amount owed, and other details. If the details of the debt are incorrect, dispute it.
Under the FDCPA, debt collectors can’t threaten consumers with illegal actions. Here are some red flags that indicate the debt collector may be breaking the law:
The statute of limitations is a law that establishes the deadline for a creditor or debt collector to sue you for an unpaid debt. Each state has its own statutes of limitations. Since these laws vary by state, it’s important to understand what protections you have under your state’s laws.
Here’s where things get tricky: After the statute of limitations passes, the debt is considered time-barred. This means that debt collectors can no longer sue you to collect the debt. It does not mean you no longer owe the debt.
Because you still owe the debt, the FDCPA doesn’t prohibit debt collectors from trying to collect on a debt that is time-barred or past the statute of limitations for debt in your state.
It’s important to know what the statute of limitations is for your debt. If a debt collector threatens to sue you for a time-barred debt, they are likely committing an FDCPA violation. In some states, the debt collector must tell you if the statute of limitations has expired.
Under the FDCPA, debt collectors must disclose who they are and what debt they’re trying to collect. They can’t make false statements, misrepresent themselves, or misrepresent any aspect of your debt.
The most common violations reported to the CFPB in this category include:
Under the FDCPA, a debt collector cannot harass or abuse you while attempting to collect money. The most common complaints the CFPB received in this category were:
This was the least common complaint by consumers, but it still happens.
Know your rights!
It is legal for a debt collector to call your friends, family members, or employer, but they’re limited in what they can say. They can ask for your contact information, but they can’t discuss your debt or harass your friends, family, or employer in any way.
Also, if the debt collector knows that you’re represented by an attorney, they must contact your attorney instead of calling you directly.
Finally, if you make a written request for debt collectors or collection companies to stop contacting you, they must comply or they’re breaking the law.