Fair Debt Collection Practices Act: How it Protects Consumers Rights

Are debt collectors bugging you? Do you have collections on your credit that are dropping your scores?

Thanks to the Fair Debt Collection Practices Act (FDCPA), consumers are protected from abusive collection tactics. The Federal Trade Commission reported that the 3 most common FDCPA violations included the following:

Harassment From Debt Collectors

Actions by debt collectors that are considered harassment can include:

  • Excessive calls to purposely annoy a consumer
  • Calls made to the consumers work place after they have been informed they cannot call there
  • Threats of violence
  • Use of profane language
  • Misrepresentation, claiming to be an attorney or government representative
  • False claims of arrest or legal action

Demands For Improper Amounts

Close to 40% of reported FDCPA violations involved debt collectors who attempted to collect more than the amount the consumer actually owed. In many cases debt collectors would demand additional interest not stated in original contracts, excessive "legal" fees, and other expenses.

Failure To Notify Consumer Of Debt

A debt collector must send the consumer a written notice of their attempts to collect the alleged debt within five days of first contacting the consumer. The notice must provide the consumer the following:

  • How much money is owed
  • The name of the creditor the debt is owed to
  • What to do if the consumer does not believe the debt is theirs

Before You Pay a Debt Collector, Consider All Your Options

Collections on your credit can definitely impact your scores. Did you know that paying a collection off will actually do more harm to your score than help? The collection is not removed from your credit report but is simply updated to a paid collection.

Before you make any payments, speak with a credit expert! There are ways you can leverage federal laws to ensure any collections reporting against you are 100% accurate.

At MSI Credit Solutions we leverage our clients' rights to audit items in question. Since 2006, we have averaged a 50-80% deletion rate. As items are corrected and removed from the credit report, this results in an increase to our clients credit scores!

Need help to improve your credit score? Call us now!

Don't wait to find out what happens with your credit score. Start working on your credit now to and set yourself up for a brighter financial future

Give us a call today for a free credit analysis and consultation!
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*The information in this article has been provided strictly for educational purposes.

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