The federal government has set up debt collections law to protect the borrowers from unfair debt collection practices. The most popular program under this is the ‘Fair Debt Collection Protection Act’ - FDCPA. There were times when creditors and collectors pursued any measure to make the borrowers pay the balance and more. They went to the extremes of extortion, lies and threat to collect the money. To change all this, the Congress introduced the FDCPA as a debt collections law.
Fair Debt Collection Protection Act governs how the collection agencies and debt collectors can interact with customers, especially, the measures they need to follow for collecting debt. It has brought about a great change for the consumers. This debt collections law gives them the right to take the collection agency to court if it can be proved that the collectors had followed unlawful measures to collect debt.
A consumer must be well equipped with all the facts and rights under this federal act. Under this debt collections law, the following aspects ensure that the consumer is well protected.
In addition to the FDCPA, the consumers must be aware of the Fair Credit Reporting Act. As per this debt & collections law, the credit reporting agencies have set rules of how and what they can list in the consumer’s credit report. This can be useful for consumers in repairing their credit.