The Fair Debt Collection Practices Act

There are so many rules out there. One can feel a bit tired of them all. But as we all know, these rules are here to protect us. Now, since the economic status of the world is in peril, consumers really need more protection. Knowing the credit card laws can keep you from financial ruin. Once you are able to apply credit card law knowledge for example, you will be aware if a company is taking advantage of you or not. The Fair Debt Collection Practices Act is just another one of these rules. If you have ever been harassed by collectors that keep hounding you or calling you even after you have told them to stop, then this article is for you.

There are so many ways a debt collector can be abusive. Some of them even talk about your debt with your parents, neighbors, or even with your boss. You can stop this, along with other illegal and unethical methods if you have acquainted yourself with the Fair Debt Collection Practices Act.

The Fair Debt Collection Practices Act is a synch to understand. First of all, you must be acquainted with three important terms: these are: the debtors, the creditor, and the debt collectors. Basically, you are the debtor. Even if you don’t have any unpaid loans or mortgages, you can still be a debtor if you are using a credit card (and nowadays, who isn’t?). The creditor of course is the bank or the credit card company whose money you borrowed. The Debt collector may be represented by an attorney, a collection agency, or by the creditor himself.

Remember that with the Fair Debt Collection Practices Act, the law protects you from the above mentioned tactics of debt collectors. Your debt status is a personal matter. Collectors do not have any right to discuss this with anyone else in detail unless they are co-signers of the account in question. This can be humiliating for some people. Also, collectors cannot engage in these kinds of discussions because your financial information is a highly sensitive private business that can be taken advantaged of by some. Debt collectors are not permitted to hound you either on the phone or face to face. Also, debt collectors cannot take legal action within thirty days if you submit a written dispute regarding your bills. Also, if your debt has expired, collectors who still continue hounding you are legally liable.

So remember, these collectors have no right to coerce you into paying with such tactics. However, don’t think that because of the FDCPA, you can relax from your debt responsibilities. Everyone must still apply credit card sense to avoid debt. And for those who have real debt or loans, you will still have to pay it sooner or later.