Understanding the Fair Debt Collection Practices Act

1. Understanding the FairDebt Collection Practices Act By Michelle Dunn www.MichelleDunn.com

2. According to the FTC In 2009 therewere 32,076 complaints about in-house collectors In 2008 therewere 26,652 complaints about in-house collectors A difference of 5,424 complaints

3. According to the Better Business Bureau: DebtCollectorsresolve 85% of the complaints receivedagainstthem, whichissignificantlyhigherthananyotherindustry.

4. Debtscovered by the FDCPA: Personaldebts Familydebts Householddebts Personalcreditcards Auto loans Medical bills Mortgage

5. How bill collectors can contact debtors: In person By mail By telephone By telegram By fax

6. The FDCPA only applies to: Consumer debts Mortgage Auto loan Medical bills Credit card bills utilities Third party debt collectors – NOT original creditors

7. Last year 4,162 consumers complained about collectors calling them at work. The law instructs collectors not to call consumers at work if the consumer has stated their employer prohibits such contacts and such contacts may put the employee’s job at risk.

8. The FDCPA requires collectors to: Identify themselves as a debt collector Give the name & address of the original creditor Notify the consumer of their right to dispute the debt Provide verification of the debt File a lawsuit in a proper venue Check time zones before calling debtors Have written polices in place Have a compliance plan and a compliance officer to oversee that plan

9. Complaints received by the FTC: 88,190 FDCPA complaints about 3rd party collectors in 2009 78,925 FDCPA complaints about 3rd party collectors in 2008

10. Resources www.ftc.gov www.credit-and-collections.com www.encyclopediaofcredit.com www.FDCPA.biz