The FDCPA law in regards to debt collections

The FDCPA or the Fair Debt Collections Practices Act is the federal law that mainly applies to the debt collection agencies and their collection practices. If you fail to make payments, the creditor or the lender may hand over the collections to the collection department or sell off the debt to a new debt collection agency. But, most of the collection agencies practice unlawful processes in order to collect debt. So it is important for you to know the FDCPA law so that you can easily handle the collection agencies.

Restrictions by FDCPA

Some of the FDCPA restrictions are:

1. The collection agencies cannot threaten you or harm your credit rating. They can only warn you to refer your account to an attorney and report it to credit bureaus.

2. According to Fair Debt Collection Practices Act, no collection agency can contact a third party who is in no way related to the debt.

3. They cannot inform your employers about the purpose of the call: if not asked for.

4. They cannot call you at odd times. They can call you only within 8 am and 9 pm.

5. They cannot request you for post dated checks with wrong intentions.

6. They cannot use fake identity f the purpose of debt collection. For example, debt collectors often pretend to conduct a survey intending to collect your personal information.

Other than the above, the collection agencies cannot also use any kind of abusive language to extricate the dues from you.