by admin | Jul 6, 2015 | CFDCPA |
1788. This title may be cited as the Rosenthal Fair Debt Collection Practices Act. 1788.1. (a) The Legislature makes the following findings: (1) The banking and credit system and grantors of credit to consumers are dependent upon the collection of just and owing debts. Unfair or deceptive collection practices undermine the public confidence which is essential to the continued functioning of the banking and credit system and sound extensions of credit to consumers. (2) There is need to ensure that debt collectors and debtors exercise their responsibilities to one another with fairness, honesty and due regard for the rights of the other. (b) It is the purpose of this title to prohibit debt collectors from engaging in unfair or deceptive acts or practices in the collection of consumer debts and to require debtors to act fairly in entering into and honoring such debts, as specified in this title. 1788.2. (a) Definitions and rules of construction set forth in this section are applicable for the purpose of this title. (b) The term "debt collection" means any act or practice in connection with the collection of consumer debts. (c) The term "debt collector" means any person who, in the ordinary course of business, regularly, on behalf of himself or herself or others, engages in debt collection. The term includes any person who composes and sells, or offers to compose and sell, forms, letters, and other collection media used or intended to be used for debt collection, but does not include an attorney or counselor at law. (d) The term "debt" means money, property or their equivalent which is due or owing...
by admin | Jul 6, 2015 | FDCPA |
This is the entirety of the Guidelines to FDCPA directly quoted from the Federal Trade Commission: FAIR DEBT COLLECTION PRACTICES ACT – As amended by Public Law 104-208, 110 Stat. 3009 (Sept. 30, 1996) To amend the Consumer Credit Protection Act to prohibit abusive practices by debt collectors. Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That the Consumer Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the end thereof the following new title: TITLE VIII – DEBT COLLECTION PRACTICES [Fair Debt Collection Practices Act] Sec. 801. Short Title 802. Congressional findings and declaration of purpose 803. Definitions 804. Acquisition of location information 805. Communication in connection with debt collection 806. Harassment or abuse 807. False or misleading representations 808. Unfair practice 809. Validation of debts 810. Multiple debts 811. Legal actions by debt collectors 812. Furnishing certain deceptive forms 813. Civil liability 814. Administrative enforcement 815. Reports to Congress by the Commission 816. Relation to State laws 817. Exemption for State regulation 818. Effective date § 801. Short Title [15 USC 1601 note] This title may be cited as the “Fair Debt Collection Practices Act.” § 802. Congressional findings and declarations of purpose [15 USC 1692] (a) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy. (b) Existing laws and procedures for redressing these injuries are inadequate...
by admin | Jul 6, 2015 | FDCPA |
Required: The Act requires debt collectors to do the following (among other requirements): • Identify themselves and notify the consumer, in every communication, that the communication is from a debt collector, and in the initial communication that any information obtained will be used to effect collection of the debt • Give the name and address of the original creditor (company to which the debt was originally payable) upon the consumer’s written request made within 30 days of receipt of the §1692g notice; • Notify the consumer of their right to dispute the debt (Section 809), in part or in full, with the debt collector. The 30-day “§1692g” notice is required to be sent by debt collectors within five days of the initial communication with the consumer, though in 2006 the definition of “initial communication” was amended to exclude “a formal pleading in a civil action” for purposes of triggering the §1692g notice, complicating the matter where the debt collector is an attorney or law firm. The consumer’s receipt of this notice starts the clock running on the 30-day right to demand verification of the debt from the debt collector. • Provide verification of the debt If a consumer sends a written dispute or request for verification within 30 days of receiving the §1692g notice, then the debt collector must either mail the consumer the requested verification information or cease collection efforts altogether. Such asserted disputes must also be reported by the creditor to any credit bureau that reports the debt. Verification should include at a minimum the amount owed and the name and address of the original creditor. •...
by admin | Jul 6, 2015 | FDCPA |
Prohibited: The Act prohibits certain types of “abusive and deceptive” conduct when attempting to collect debts, including the following: • Hours for phone contact: contacting consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time • Failure to cease communication upon request: communicating with consumers in any way (other than litigation) after receiving written notice that said consumer wishes no further communication or refuses to pay the alleged debt, with certain exceptions, including advising that collection efforts are being terminated or that the collector intends to file a lawsuit or pursue other remedies where permitted • Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously: with intent to annoy, abuse, or harass any person at the called number. • Communicating with consumers at their place of employment after having been advised that this is unacceptable or prohibited by the employer • Contacting consumer known to be represented by an attorney • Communicating with consumer after request for validation has been made: communicating with the consumer or the pursuing collection efforts by the debt collector after receipt of a consumer’s written request for verification of a debt made within the 30 day validation period (or for the name and address of the original creditor on a debt) and before the debt collector mails the consumer the requested verification or original creditor’s name and address • Misrepresentation or deceit: misrepresenting the debt or using deception to collect the debt, including a debt collector’s misrepresentation that he or she is an attorney or law enforcement officer • Publishing the consumer’s name...
by admin | Jul 1, 2015 | CFDCPA |
The California Fair Debt Collection Practices Act: California residents are afforded additional protection from collection agencies under the California Fair Debt Collection Practices Act or CFDCPA, which is also commonly referred to as the Rosenthal Fair Debt Collection Practices Act (RFDCPA). Because of this law California covers a broader definition of debt collectors. Who must comply with the CFDCPA? • Collection Agencies • Anyone who collects consumer debts in the regular course of business • Companies which author forms and/or tools for debt collection • Attorneys and legal staff that collect debts • Original Creditors The CFDCPA is intended to regulate full time debt collectors or those who collect debt on a regular basis. Which means CFDCPA does not apply to every type of debt. Certain Debts and Debt Collectors are Not covered by the CFDCPA. What does this mean? Occasional Debt Collectors do not need to comply (If someone owes you money, but you do not collect debt for a living, you do not have to comply with CFDCPA) Non-consumer Credit transactions generally do not apply to CFDCPA regulations. In layman’s terms Debt incurred for the purposes of personal loans, buying property, or obtaining services for personal, family, or household needs would be subject to these regulations. However, debt incurred for the sake of or while operating your business will most likely not be subject to these regulations. Foreclosure may not be covered. If a mortgage provider or attorney is attempting to foreclose on your home the CFDCPA does not automatically apply. If you suspect the CFDCPA is being violated in a foreclosure on your home we recommend...
