Debt Recovery Fairness Act
According to the Federal Trade Commission, there are Congressional findings that reveal evidence about the unfair practices of debt collectors. These practices are abusive or deceptive and they lead to personal bankruptcies, the loss of jobs, marital instability, and the invasion of individual privacy.
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Purpose
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When the Fair Debt Collection Practices Act was created by Congress, it was designed to strengthen laws and procedures for protecting consumers, to encourage consistent state action with protecting consumers from this form of abuse, and to insure that debt collectors who refrain from using unfair practices are not completely disadvantaged.
Harassment/Abuse
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Debt collectors cannot harass, abuse, or oppress any person in connection with the collection of a debt. Debt collectors cannot use violence or criminal means to harm a person, their reputation or property. They are not permitted to use obscene or profane language, coerce payment with an advertisement of sale for a debt, or intentionally engaging in a telephone conversation with the intent to annoy or abuse the debtor.
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Legal Actions
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Debt collectors can use legal action to collect debts from consumers by going through the legal system to obtain compensation for the debt. Non-compliant debt collectors who violate the statues of the Act will be held liable for damages to the consumer and these damages come with fines that can range from $1000 to $500,000 depending on the circumstances of a particular case.
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