Fair Debt Collection Practices Act- Is It Working?

Many consumers have managed to survive the recession and weak economy in the last few years, however most have done so with a struggle. Individuals who previously had no experience with debt collectors and their antics may have been surprised by the tactics used to collect delinquent payments. While many consumers are back on their financial feet again, there are still plenty stuck in the battle with debt collectors. The Fair Debt Collection Practices Act was designed to level the playing field and afford consumers who have fallen behind some methods in which to defend themselves from unfair collection practices. Despite this, consumer complaints regarding debt collectors continues to rise.

No Relief For Debtors

Some might say that a person who owes an outstanding debt does not have the right to protection from debt collectors. Those people probably have never been on the receiving end of aggressive collection actions. The majority of individuals dealing with debt are doing so because of a financial hardship which has rendered them unable to keep up with their debt obligations. Unfortunately debt collectors do not discriminate between those who have a legitimate crisis and those who simply choose not to pay their bills. As a result, all debtors are treated to the same collection actions regardless of their individual circumstances.

Common Consumer Complaints

The Fair Debt Collection Practices Act prohibits aggressive collection actions such as harassment or the threat of serious consequences which they are not permitted to carry-out. For example, a debt collector cannot threaten a debtor with a law suit unless they are in the process of initiating that legal action. Debt collectors are also prohibited from contacting a debtor repeatedly in a way which would be considered harassing. Ironically, these are two of the top complaints received by the FTC from debtors regarding debt collectors. In some cases, the harassment has escalated to the point where debtors have been threatened with violence if they do not pay. This is illegal, however the number of complaints suggest the message is not being received by debt collectors.

Your Rights and How To Protect Them

The first line of defense in protecting yourself from unfair collection practices is learning exactly what actions are prohibited by the FDCPA. Due to the increase in consumer complaints it appears obvious that many debt collectors continue to apply illegal collection tactics due to the lack of enforcement. Unless and until consumers defend their rights, these actions will likely continue. For this reason, a full understanding of what debt collectors can and cannot do, as well as what steps to take when your rights have been violated seems to be the only way to stop aggressive collection activities.