Editing Debt collection (section)

====Fair Debt Collection Practices Act====
{{main|Fair Debt Collection Practices Act}}
The [[Fair Debt Collection Practices Act]] (FDCPA) is the primary federal law governing debt collection practices. The FDCPA allows aggrieved consumers to file private lawsuits against a collection agency that violates the Act. Alternatively, the [[Federal Trade Commission]] or a [[state attorney general]] may take action against a noncompliant collection agency and, in the event a violation is found, may impose penalties including fines, damages, restriction of the debt collector's operations or closing down its operations, as occurred with [[Capital Acquisitions and Management Corporation|CAMCO]] in 2006.<ref>{{cite web|title=Federal Trade Commission Enforcement of the Fair Debt Collection Practices Act: Report To the Consumer Financial Protection Bureau|url=https://www.ftc.gov/reports/federal-trade-commission-enforcement-fair-debt-collection-practices-act-report-consumer-1|publisher=Federal Trade Commission|access-date=19 January 2018|date=February 2016}}</ref> Between 2010 and 2016 the Federal Trade Commission banned more than 60 companies that did not follow the [[Fair Debt Collection Practices Act]].<ref>{{cite web|url=https://finance.yahoo.com/news/how-to-get-the-debt-collector-to-pay-you-know-your-rights-141908625.html|title=How to get the debt collector to pay you|access-date=14 June 2017|date=2016-11-21}}</ref>

The FDCPA specifies that if a state law is more restrictive than the federal law, the state law will supersede the federal portion of the act. Thus, the more restrictive state laws will apply to any agency that is located in that state or makes calls to debtors inside such a state.

Among the protections provided by the FDCPA are the following:

* A debtor has the right to request written validation of the debt;<ref>{{cite web |title=15 U.S.C. Sec. 1692g. Validation of Debts |url=https://www.law.cornell.edu/uscode/text/15/1692g |website=Legal Information Institute |publisher=Cornell Law School |access-date=4 November 2019}}</ref>
* A debtor may demand that the collector cease communication.<ref name="FDCPAtext">{{cite web|url=http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf|title=Fair Debt Collection Practices Act|date=7 July 2010|access-date=29 July 2015}}</ref> Section 809 of the Act directs that for disputed debts "the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt". When consumers resort to lawsuits against collectors who fail to verify debts, the collector is liable for the complainant's legal costs if the debt is found to be bogus.<ref>{{cite news|last1=Lazarus|first1=David|title=When debt collector seeks payment, who has burden of proof?|url=https://www.latimes.com/business/la-xpm-2013-jul-08-la-fi-lazarus-20130709-story.html|access-date=19 January 2018|work=Los Angeles Times|date=8 July 2013}}</ref>
* A debt collection may not place a call to the debtor if the call will cost the debtor toll charges (in most other countries recipients of telephone calls are not charged, so this issue does not arise).
* Limits are placed on the time of day that debt collection calls can be made, to whom, and where. If a person answers, the call center may track statistics (e.g., the times and days when someone answers) in order to place calls at times when the debtor is more likely to be home; typically this is done by an automated dialing system between the times of 8&nbsp;a.m. and 9&nbsp;p.m. local standard time. The collector may not use illegal and deceptive practices (e.g., threatening the debtor with arrest or [[Police impersonation|impersonating law enforcement]]).
* The collector cannot use obscene language and must inform the debtor of the nature of the call, their name, and the name of the collection company when requested.
* Collectors must state their name and must give the name of their employer if the person specifically asks. They may only contact each person once, unless it is believed that the person gave the collector incorrect or incomplete information at the time, but now has complete or updated information.<ref name="FDCPAtext"/>

Collectors may contact a debtor at the workplace unless the collector has been informed the employer prohibits such calls.<ref name="FDCPAtext"/> The FDCPA allows a collector to call a neighbor or relative for help in locating the debtor, but they may only ask for "address, home phone number, and place of work" and are "not permitted to discuss [the] debt with anyone other than [the debtor], [their] spouse, or [their] attorney".<ref>[http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm "Debt Collection FAQs: A Guide for Consumers"], U.S. Federal Trade Commission</ref> The debtor may grant a debt collector permission to the collection agency to speak to other people, but otherwise contact with an unauthorized person violates the FDCPA.