FDCPA: Prohibited Practices

Categories of Prohibited Practice

The FDCPA prohibits debt collection practices that fall into three categories:

  • Harassment
  • False or misleading information
  • Unfair practices

Harassment

The FDCPA states that debt collectors may not engage in any conduct to harass, abuse or threaten any person in connection with a debt. Becasue “harassment” is a subjective term, the FDCPA has issued clear guidlines to help debt collectors understand exactly what is considered harassment when contacting consumers.

Debt collectors may not:

  • Contact consumers during inconenient hours ( before 8a.m. or after 9 p.m. at the consumer’s local time). Note: This is the most common violation of the FDCPA
  • Repeatedly telephone consumers and/or their friends, relatives and neighbors with the intent to annoy those individuals.
  • Contacting consumers without identifying themselves.
  • Contacting consumers at work if they know that the employer disapproves of such contacts or if the consumer has asked them not to call them at work.
  • use or threaten to use violence to collect a debt
  • Use obscene or profane language
  • Publish a list of consumers who refuse to pay their debts ( except to a credit bureau)

False or Misleading Information

The FDCPA prohibits debt collectors from using and false or misleading statements when collecting debt. Debt collectors should be especially careful in how they present information to consumers. Even implying something that is false, and allowing consumers to believe it, is a violation of the FDCPA.

False Identification; Debtors may not:

  • Falsely imply they are attorneys or government representatives.
  • Falsely imply they operate or work for a credit bureau
  • Use a false name.
  • Indicate that papers presented to a consumer are legal forms when they are not.
  • Indicate that papers presented to a consumer are not legal forms when they are.
  • Send the consumer anything that looks like an official document from a court or government agency when it is not.

False Information; Debt collectors may not:

  • Misrepresent the amount of the consumers debt.
  • Give false information about a consumer to a credit bureau
  • Make false threats
  • Imply that a debtor has committed a crime or will be arrested if they do not pay off their dent. Owing money is not a crime.
  • State that they will seize, garnish, attach or sell the consumer’s property or wages, unless the collection agency intends to do so and it is legal to do so.
  • Threaten to take any action, such as a lawsuit that cannot legally be filed, or that the collector does not intend to take.