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FDCPA - Facts That You Should Know About It

By Expert Author: Jason Holmes | Article Abstract
Word Count: 266 words | Views: 130 view(s)
The Fair Debt Collection Practices Act or FDCPA was developed in order to protect consumers from being harassed by the collection agencies. It was observed that many consumers were choosing the option of bankruptcy being threatened by the debt collectors. So, a federal act named FDCPA was passed to provide guidelines of debt collection.

The important facts:

• Debts covered under FDCPA- Types of debts, covered under FDCPA may vary slightly from state to state. In some states, the law may cover a broader range of debt types, but in most of the cases they are similar: The types of debt that are generally covered under the act are:
o Personal loans
o Home loans
o Car loans
o Retail financing loans
o Loans taken for purchasing medical care
o Credit card debt
o First mortgage loan
o Second mortgage loan

• Debt collectors covered under FDCPA- The act generally provides guidelines for all the parties that are involved in collection of debt, owed to others. But, there are some specific inclusions and exclusions. The persons or agencies, whose conducts are regulated under FDCPA act are:
o Collection Agencies
o Repossession companies
o Creditors who collect debt for other creditors
o Collection attorneys i.e. the lawyers who provide debt collection service
o Creditors who collect debt with false names
o Persons who supply deceptive collection letters

• Debt Collectors, not covered under FDCPA- There are some debt collectors, whose activities are not restricted by the FDCPA. The parties who are excluded from the act are:
o In-house collection agents i.e. the creditors who collect their own debts
o Banks that collect their own debts
o Credit card companies like Chase, Visa, MasterCard, Citibank, American Express, MBNA
Jason Holmes

About the Author/Author Bio

Jason Holmes is a reputed author and she has been writing articles on debt consolidation. She has also written for the Debt Consolidation Care community. Some of the articles written by her include FDCPA, Legacy Visa, Cach LLC, Palisades Collection and Midland Credit Management. Her write ups are very informative and have proved to be very helpful those in debt.

Article Source: http://www.articlesphere.com/Article/FDCPA---Facts-That-You-Should-Know-About-It/161636

Article Submitted: 2008-08-27 | This Article has been viewed 130 times.

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