Disputing Your Debts as laid out by the Fair Debt Collection Practices Act.
First, what is the Fair Debt Collection Practices Act? The Fair Debt Collection Practices Act or (FDCPA) codified as 15 U.S.C 1692 is a consumer protection amendment that establishes legal protection from abusive debt collection practices. The stated purposes are to eliminate abusive practices in the collection of debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information and ownership is accurate.
The act sets forth guidelines that debt collectors must follow in order to conduct business. More importantly it defines the rights of the consumers who are involved with debt collectors and lays out the penalties and remedies for their violations.
If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) of this section that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumer’s right to dispute the debt or request the name and address of the original creditor.
The most important thing we can say here and cannot stress it enough is DISPUTE YOUR DEBTS. If we all adhere to this the landscape of the debt collections industry is going to change drastically.
Remember over 50% of debts owned by debt collection companies are not VALID! They do not have the proper paperwork to verify the debt by law which means it is ILLEGAL to collect. Dispute your debts.
This content provides general consumer information. It is not legal advice or regulatory guidance.