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1 1 (June 10, 2019)

handle is hein.crs/govzzx0001 and id is 1 raw text is: Congressional Research Service ~~~Info rigthe egislative debatecsancel19l4 0 June 10, 2019 The Fair Debt Collection Practices Act: Legal Framework Overview Congress enacted the Fair Debt Collection Practices Act (FDCPA) in 1977 to eliminate abusive debt collection practices by debt collectors by rendering particular types of collection activities unlawful. This In Focus provides an overview of some of the FDCPA's most salient provisions and identifies pertinent legal considerations for Congress. To Whom-and to Which Debts-Does the FDCPA Apply? With limited exceptions, the FDCPA applies only to entities that qualify as debt collectors. The statute's definition of debt collector is intricate and excludes various entities from its scope. For example, a creditor seeking to collect debts on its own behalf and under its own name ordinarily does not qualify as a debt collector. Federal employees who collect debts pursuant to their official governmental duties seldom qualify as debt collectors either. Additionally, Congress amended the FDCPA's definition of debt collector in 2006 to exclude certain private entities that operate bad check enforcement programs on behalf of a state or district attorney. Along with only covering certain entities, the FDCPA also applies only to certain debts. The FDCPA defines debt to include only obligations incurred primarily for personal, family, or household purposes such as credit card debt and medical bills. As a result, business debts ordinarily fall outside the FDCPA's scope. What Does the FDCPA Prohibit? The FDCPA bars debt collectors from taking various actions when seeking to collect debts from consumers. Among other things, the FDCPA: * Forbids debt collectors from using any false, deceptive, or misleading representation or means in connection with the collection of any debt. For example, a debt collector may not misrepresent the character, amount, or legal status of any debt. * Prohibits debt collectors from using unfair or unconscionable means to collect or attempt to collect any debt. For instance, a debt collector may not attempt to collect any money-such as a fee or expense-not expressly authorized by the agreement creating the debt or otherwise permitted by applicable law. * Bars debt collectors from engaging in harassment or abuse. To illustrate, a debt collector may not use profane language or threaten to use violence when attempting to collect a debt. * Regulates when, where, how, and under what circumstances debt collectors may communicate with consumers and third parties. For example, a debt collector generally may not contact a consumer at an unusual time or place that would be inconvenient to the consumer. * Requires debt collectors to provide consumers with a written notice that discloses certain information and allows the consumer to dispute the debt's validity. Among other things, this notice includes the amount of the debt and the creditor's identity. * Restricts the forums in which a debt collector may pursue legal actions against a debtor. A debt collector may not, for instance, force a consumer to defend himself against a lawsuit in an inconvenient or geographically distant court. Who Enforces the FDCPA, and How? The FDCPA authorizes several federal agencies-including the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB)-to pursue enforcement actions against debt collectors in particular contexts. Congress has also authorized the CFPB to promulgate rules and regulations to implement the FDCPA. For instance, the CFPB recently invited public comment on a proposed regulation that would aim to, among other things, clarify how debt collectors may employ.., newer communication technologies in compliance with the FDCPA and provide interpretive guidance regarding the FDCPA's consumer disclosure requirements. Besides authorizing these agencies to initiate administrative enforcement actions, the FDCPA also empowers consumers to enforce the statute by bringing private lawsuits. Subject to certain conditions and limitations, if a debt collector violates the FDCPA, the person subjected to those violations may obtain an award of monetary damages and attorney's fees from that debt collector. Many courts have concluded, however, that the FDCPA does not authorize awards of punitive damages. A court may not hold a debt collector liable under the FDCPA if it can prove that (1) the violation resulted from an unintentional good-faith error, and (2) the collector maintained procedures reasonably adapted to avoid any such error. Nor will a debt collector be liable for any act https:crs reports cong tess go

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