Debt collectors are businesses whose sole purpose is the collection of debts owed to third parties. The Fair Debt Collection Practices Act regulates the activities of debt collectors. According to Stephen P. Parsons in The ABCs of Debt, "The FDCPA regulates the debt collection industry by prohibiting abusive collection practices and providing redress for the debtor who is victimized by them."
Locating the Debtor by Contacting Others
Section 804 of the FDCPA deals with locating the debtor and addresses the circumstance of the debt collector contacting someone other than the debtor in order to try and locate the debtor. The debt collector must properly identify himself or herself but must avoid stating that he or she works for a debt collection company unless specifically asked. The debt collector cannot mention that he or she is trying to locate the person in order to collect on a debt.
Additionally, the debt collector cannot communicate with the person by post card or use any language or symbol on an envelope addressed to the person that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt. In other words, the debt collector cannot do anything that would reveal to third parties that he or she is trying to collect on a debt.
Furthermore, the debt collector is prohibited from contacting a third party more than once in an attempt to locate the debtor, unless requested to do so or unless the debt collector reasonably believes the person previously contacted now has more up to date information about the whereabouts of the debtor.
Section 804 Protects the Debtor's Privacy and Prevents Harassment of Others
It is easy to see that section 804 of the FDCPA seeks to both protect the privacy of the debtor and to prevent the person being contcted from harassing or annoying behavior. The Act was passed by Congress in response to abusive conduct by collection agencies. In passing the section 804, Congress recognized that most people would not want to be contacted repeatedly by a collection agency about a debt owed by someone else.
Private Lawsuits for Violations of the FDCPA
The FDCPA authorizes a private right of action on behalf of the debtor for any violations of its provisions. A private right of action is the right to bring a civil lawsuit in the plaintiff's own name and for his or her own benefit. A debt collector found to have violated the FDCPA may be civilly liable for the debtor's actual damages, plus a statutory penalty of up to $1,000. Additionally, the plaintiff who prevails in a civil lawsuit against a collection agency may recover attorney's fees and court costs.
Government Regulatory Actions for Violations of the FDCPA
A government regulatory action is separate from a private right of action. The FDCPA is administered by the Federal Trade Commission. Any violation of the Act may be deemed an unfair or deceptive act or practice under the Federal Trade Commission Act. If the Federal Trade Commission makes such a finding, it may assess penalties for noncompliance with the FDCPA. In extreme cases, the FTC could order a debt collection agency to cease doing business.
 |
 |
 |
 |
 |
