Minneapolis Business Attorney

Fair Debt Collection Practices

Debt collection is an important process in the United States. Because of its magnitude and prevalence, laws exist to govern the process. The Fair Debt Collection Practices Act, part of the Consumer Credit Protection Act, was introduced in order to promote fair debt collection, eliminate abusive practices, and provide consumers with an avenue for obtaining debt information and disputing it if the validity is questionable. The Act also provides guidelines for debt collecting business, consumer rights, and penalties for violations.

Certain types of behavior are considered “abusive and deceptive” and are strictly prohibited by the act. Debt collectors may not contact consumers outside the time frame from 8 a.m. to 9 p.m. local time. If the consumer provides written notice to the debt collector to stop contact, any further attempts of communication are strictly prohibited. Misrepresentation of debt collecting purposes, seeking unjustified amounts, abusive or profane language, and contacting consumers with known legal counsel are all outlawed by the Fair Debt Collection Practices Act.

Enforcement of the Act is governed by the Federal Trade Commission under the powers vested in it by the Federal Trade Commission Act. Consumers may also file private lawsuits in state or federal court to collect damages from debt collectors. The Fair Debt Collection Practices Act is a strict liability law, meaning consumers do not have to prove actual damages in order to win up to $1,000.

If you have experienced unfair debt collecting practices, contact the experienced Minneapolis business attorney at Skjold ▪ Barthel today at 623.746.2560 to discuss your legal options.