The Fair Debt Collection Practices Act or FDCPA was developed in order to protect consumers are not harassed by the debt collection company. It was observed that many consumers were choosing the option of bankruptcy, the debt collectors threatened. So have adopted a federal law called the FDCPA guidelines on debt collection.
The key facts:
• Debts covered under FDCPA - types of debts that fall under FDCPA may vary slightly fromState to state. In some states, the law may cover a wider range of debt types, but in most cases they are similar: The types of debts that fall generally under the Act:
- Personal loans
- Mortgage loans
- Auto Loans
- Retail credit
- Loans for the purchase of medical care
- Credit Card Debt
- First mortgage loans
- Second Mortgage
• Debt collectors covered under FDCPA - The act provides for generalGuidelines for all parties who are involved in the collection of debts owed to others. But there are some specific inclusions and exclusions. The persons or entities whose conduct is under FDCPA law are regulated:
- Collection Agencies
- Withdrawal of Company
- The creditors who collect debts for other creditors
- Collection Attorneys mean the lawyers who offer debt collection service
- The creditor to collect the debt with a false name
- PeopleSupply deceptive collection letters
• Debt collectors are not covered by FDCPA - There are some debt collectors that their activities are not restricted by the FDCPA. The parties who are themselves excluded from the Act:
- In-house collection agents, for example, the creditors who collect their own debts
- Banks collect their own debts
- Credit card companies like Chase, Visa, MasterCard, Citibank, American Express, MBNA.
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