Consumers who have debt in default have probably received many calls from debt collectors wanting them to make payments. Consumers are protected from abusive collection practices under the Fair Debt Collection Practice Act (FDCPA). However, the FDCPA protections do not apply to a consumer’s original creditor.
The FDCPA was created by Congress to prohibit the unfair, deceptive, or abusive practices by debt collectors when attempting to collect on consumer debt. There are numerous restrictions placed on debt collectors as to what they are allowed to do when they are collecting debts. Consumers are also provided with certain rights and remedies against debt collectors who violate provisions of the FDCPA. These provisions do not apply to creditors.
Under the FDCPA, a creditor is defined as a person or entity that extends credit to a consumer in the first place. The FDCPA is designed to protect debtors from third party debt collectors, not the original creditor or the employees of that creditor. There is one exception to this rule. If a creditor is attempting to collect its own debts while using a different name, implying that a third party is attempting to collect on the debt, then the creditor will not be exempt from the FDCPA.
A debt collector is considered to be a third party who regularly engages in the business of collecting or attempting to collect debts that are owed to another person. Common examples include:
Exceptions to the Definition of Debt Collector Under the FDCPA
Under the FDCPA, a person who is attempting to collect on a debt from someone else is not considered a debt collector when:
Our experienced attorneys here at Krohn and Moss Consumer Law Center have also provided many helpful resources regarding the TCPA and the FDCPA and how telephone debt collectors should act. We have been successfully representing those abused and taken advantage of by debt collectors for years, and have a long list of successful stories to share with you. We offer a FREE CASE REVIEW for you to assess whether we can assist you with your matter. Please do not hesitate to contact us toll free at 1-800-875-3666 or visit our website at http://www.krohnandmoss.com/.