In 1978 Congress implemented the Fair Debt Collection Practices Act (FDCPA) in an attempt to restrict abusive collection practices and to provide specific rights for consumers. Most debt collectors comply, but more than 25 years after the law has passed, many debt collectors still flagrantly violate the law.
The FDCPA only regulates "debt collectors." Debt collectors include collection agencies and attorneys attempting to collect debts. Debt collectors do not include companies - such as credit card issuing banks - attempting to collect money for their own business.
Consumers who are victims of debt collection harassment have important legal rights which can be resolved in local justice of the peace courts. The FDCPA allows for successful consumers to recover from thecollection agencies their actual damages, attorney fees, costs of court and up to $1,000 for statutory damages. Many attorneys will assist consumers with these cases on a contingency fee so that the consumers, who many times are without financial resources, can protect their rights.
The prohibited acts are many, but generally the debt collectors are not allowed to (1) threaten criminal action, (2) use abusive language, (3) repeat telephone calls in an effort to harass, (4) contact neighbors or fellow workers, (5) contact consumers who have asked not to be contacted, (6) threaten to foreclose on a Texan’s house, repossess a Texan’s car, or garnish a Texan’s wages, (7) pretend they are affiliated with a governmental agency, (8) misrepresent the legal status or amount of a debt, and/or (9) threaten a law suit is imminent or has been filed when they do not intend to file a suit.
There are many other prohibited acts under the law. Consumers must bring their claims within one year of the collection abuse. If you have any questions regarding consumer rights under this law, contact an attorney.
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