The debtor-creditor relationship can oftentimes be a muddled and confusing one. It is often difficult to determine who exactly is taking advantage of whom and that paradigm can shift without a moment’s notice. That is why the United States Congress passed the Fair Debt Collection Practices Act in 1978.
The FDCPA was primarily created with the debtor in mind. It serves to protect the debtor from creditors who use abusive, unfair, or unfair debt-collection practices. Unfortunately, this is an all too common trend as creditors can oftentimes be harassing and even bullying when dealing with a debtor who owes them money.
More on the FDCPA
The FDCPA helps debtors in the following ways:
• Provides debtors with the ability to challenge their creditors’ payoff demands as well as the ability to question the accuracy and validity of debts
• The act establishes ethical guidelines for the handling and collection of consumer debts
NOTE: Generally, the FDCPA only applies to third-party creditors. That is a creditor who has sold off your debt to a collection agency at a bargain rate. These third-party creditors are oftentimes a nasty bunch who threaten, harass, and bully in order to get their way. In order to protect debtors from harassing original creditors, many states have implemented consumer-protection laws.
If you are an American consumer who is surrounded by debt and doesn’t know where to turn then it is absolutely crucial that you know your rights. This includes not letting yourself be harassed or bullied by a creditor just because you owe them money. Talk to a licensed bankruptcy attorney in your area today about how the FDCPA laws affect you and your impending bankruptcy case.
