Fair Debt Collection Practices Act (FDCPA) was established to protect customers from offensive, misleading, or unjust debt collection activities by debt collection companies. Even though they must abide by federal law, these organizations often fail to comply with the strict standards that the FDCPA requires of their officials and representatives. Have you witnessed fair debt collection practices act violations, harassment or extortion attempts? You have choices, and you may be able to obtain compensation for the losses you have suffered due to their actions.
Listed here are the seven most common FDCPA violations –
1. Persistent efforts to collect debts from people who do not owe anything.
Constant communication with consumers over debts they have either paid off in full or are not even theirs to begin with, is becoming more common.
2. Communication strategies that are illegal or immoral
Callers have been reported for making threats or using rude and abusive language throughout their conversations.
3. Verification of debt disclosure and repayment
The collection agency fails to provide a written debt validation notification to the consumer within 30 days, which includes the amount of the debt, the name of the creditor, and a notice of the consumer’s right to challenge the debt.
4. Engaging in or threatening to engage in criminal activity
Although the debt is too old and the statute of limitations for suing has expired, the collection agency threatens to sue the customer. Collection agencies have also threatened to seize the consumers’ income and private property.
5. Making misleading remarks or representing oneself in a dishonest light
The collection agency expresses or suggests that it is a legitimate entity in its advertising. Some customers have also expressed concern that the collection agency seeks to collect a larger amount than what is due.
6. Inappropriate contact or information exchange
The collection agency notifies a third party of the debt without obtaining the consumer’s explicit written consent. They are, nevertheless, permitted to get in touch with the following people without permission:
- the consumer’s legal representative
- in the case of a creditor
- the creditor’s legal representative
- a credit reporting organization
- the spouse of the consumer
- the consumer’s biological parent (if minor)
7. An excessive number of phone calls
On any given day, the collection agency makes multiple calls and several calls in succession on some days.
According to the Consumer Financial Protection Bureau’s (CFPB) latest annual reports for 2019, the Bureau recorded around 75,200 concerns involving illegal first and third-party debt recovery, making it one of the most common complaints among consumers.