Debt Collector

Debts Covered By The Fair Debt Collection Practices Act

There are several requirements that a debt must meet before it becomes governed by the Fair Debt Collection Practices Act:

  1. The debt must be a consumer debt that was incurred for personal, household or family reasons. For example: Medical debt incurred because of a spouse’s illness would meet this criterion; however, medical debt incurred because of an employee’s accident would not meet this criteria.
  2. Debts that are being handled by a debt collector and not the original creditor would be governed by the Fair Debt Collection Practices Act.  For example: If you have a credit card that went delinquent for six months, it has probably been sold to a debt collection agency.  If so, that debt would meet this criterion.
  3. The person who owes the debt must be in fact “a person” not a business.  For example, if you ran a construction business and you did not repay a supply credit line, that debt would not be covered by the Fair Debt Collection Practices Act.  But on the other hand, if you are a sole proprietor with a credit line under your personal credit (which is often the case) that debt would be governed by this act.
  4. The debt collector must have committed some type of violation against the debtor such as, saying something that is untrue, being unfair, disrespectful or behaving in a way that demeans the debtor before it will come under the auspices of the Fair Debt Collection Practices Act.  For example: If any of the violations listed below are committed by the debt collector, they are in violation of the law:
    1. Speaking about the debtor’s debt with family members, friends or other unauthorized persons.
    2. Threatening to have the debtor arrested if they don’t pay the debt immediately.
    3. Cursing, yelling and verbally or physically harassing or hurting the debtor.