Debt Recovery Law
Debt Recover Laws, or "Fair Debt Laws" relate to the practices debt collection companies must observe in the collection of consumer debts. The Federal Trade Commission (FTC) is the United States’ consumer protection agency, and enforces the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using abusive, unfair, or deceptive practices to collect obligations from debtors. Under the FDCPA, a debt collector is anyone who regularly collects debts owed to others, and may include collection agencies, certain kinds of lawyers, and other persons or entities involved in collecting the debts of others.
The Act pertains to consumer debts, which are considered personal debts like those owed on credit cards, mortgages, household expenses, and so forth. It does not protect business debts. The Act prohibits debt collectors from engaging in certain conduct, such as contacting debtors at certain times and locations, talking to people other than the debtor about the obligation, and misreporting information on a person's credit report.
If a debt collector violates the restrictions of the FDCPA, they may become civilly liable and/or subject to administrative fines.
Additionally, many states have their own consumer protection laws. These often mirror the provisions of the FDCPA, or extend its provisions. They often provide for additional penalties for improper debt collection activities. Furthermore, many state run agencies will provide additional support in combating improper debt collection activities.
If you have a question about fair debt laws, you can review the materials below for further information. Additionally, should you require legal assistance or believe you have a claim for a violation of the Fair Debt Collection Practices Act, you can find an attorney in your area that focuses on this area of the law under the Law Firms tab on the menu bar, above.
Know Your Rights!
Articles on HG.org Related to Debt Recovery Law
- Understanding the Means Test in Chapter 7 BankruptcyIn order to qualify to file under Chapter 7 of the U.S. Bankruptcy Code, Debtors must first pass the Means Test, which is set forth on Form 22 of the official Chapter 7 Petition. Many Debtors considering filing for bankruptcy are not entirely sure how to determine whether they qualify under the Means Test, as the steps that make up the test are somewhat confusing. The purpose of this article is to attempt to simplify the Means Test.
- California and Debt Settlement ScamsSome pitfalls and some recommendations when hiring someone to settle your debts.
- How Does a Chapter 13 Work?The court expects you to change your lifestyle. With trustee monitoring your financial attitudes, your case can be reopened to enlarge the payment, or dismiss it, opening the way for creditors to pursue you in a court of law with each creditor filing a separate lawsuit. This will translate into larger legal fees.
- Protecting Creditors Rights When a Debtor Files a Chapter 7 or Chapter 13 BankruptcyIn cases where the debtor has filed under Chapter 13, or it has been converted to a Chapter 13 from a Chapter 7 bankruptcy, a debt collection attorney has a number of options at their disposal when a debtor is seeking relief under the bankruptcy code. Being proactive at this point is what can make or break your chances of recovering a substantial percentage of the debtor's obligations.
- Using Chapter 13 Bankruptcy To Get Current On A MortgageThe Bankruptcy Code gives homeowners facing foreclosure the right to cure the default any time up until the foreclosure sale process is completed. The key word here is “process,” and state law determines what the process is for a valid auction or sheriff sale. Until this has been completed, homeowners who file bankruptcy can use the federal laws for another chance to save their home and cure the default.
- Garnishing Wages – Debt Collection in Potter County, Mckean County and Tioga County PennsylvaniaIn Pennsylvania you cannot garnish wages to collect a debt even after obtaining a judgment against you. The harassment and the false information violate the Federal Debt Collection Practices Act. The Act actually provides that you can sue the collector for his illegal acts and recover up to $1,000.00 per violation plus attorney’s fees.
- Filing for Chapter 13 Bankruptcy in MarylandThe purpose of a bankruptcy proceeding in Maryland is to alleviate your difficult financial obligations. As soon as you file for bankruptcy in MD, creditors will be prevented from moving forward with actions to recover unpaid debts. Once these creditors’ activities are ceased in a Chapter 13 bankruptcy proceeding, you can organize your debts, lower your repayment amount, and make those repayments over an extended period.
- How to Stop Wage GarnishmentsThe author discusses how to stop wage garnishments.
- Mitigating Loss When You Have Something to Lose: Deficiency Judgments, Credit Rating and Public ImageThe real estate crisis reaches every strata of society, including financially stable individuals and companies. There is no one-size-fits-all approach, however, and affluent clients have unique concerns that have been largely over-looked by the media and governmental programs. This article discusses strategies for resolving mortgage problems for people who have good reason to worry about deficiency judgments, credit rating, and public image.
- Debt Collection Practices Are Leading to More ComplaintsLawsuits against debt collectors alleging violations of the Fair Debt Collection Practices Act (FDCPA) are on the rise, with 1,928 court filings nationwide by mid-March. Of those filings, 462 occurred in the first two weeks of March alone, an upward trend compared with cases filed in previous periods.
- All Debtor and Creditor Law Articles
Articles written by attorneys and experts worldwide discussing legal aspects related to Debtor and Creditor including: bankruptcy, collections, credit and mortgage, debt recovery and insolvency.
Debt Recovery Law - US
- ABA - Consumer Credit Law
The use of credit is a way of life in the United States. At any one time, about three-fourths of American households have some form of debt, including credit purchases of cars, appliances, clothing, vacation trips and other goods and services. Just over two-fifths of households have loans secured by their homes—in other words, mortgages. This section will help you understand the rules, regulations, and laws about consumer installment credit, designed to protect you, the consumer.
- Communication in Connection with Debt Collection
Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt.
- Consumer Credit Protection Act
The United States Money system is primary based on Credit and Security Instruments, so in order to make sure that all people are equally given credit and not taken advantage of and are protected from this confusing money system.
- Fair Credit Reporting Act
As a public service, the staff of the Federal Trade Commission (FTC) has prepared the following complete text of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq.
- Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. § 1692 et seq., is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act. Its purposes are to eliminate abusive practices in the collection of consumer debts, to promote fair debt collection, and to provide consumers with an avenue for disputing and obtaining validation of debt information in order to ensure the information's accuracy.[
- Fair Debt Collection Practices Act - Wikipedia
The Fair Debt Collection Practices Act (FDCPA) is a United States statute added in 1978 as Title VIII of the Consumer Credit Protection Act. The FDCPA broadly defines a debt collector as "any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another."
- FDIC - Consumer Financial Rights
Consumers' financial rights are protected by federal and state laws and regulations covering many services offered by financial institutions. This brochure will assist organizations which often receive complaints about banks, savings and loan associations, and credit unions in referring complaints to the proper regulatory agency.
- Federal Wage Garnishment Law
Wage garnishment is a legal procedure through which earnings of an individual are required to be withheld by an employer for the payment of a debt. Most garnishments are made by court order. Title III of the Consumer Credit Protection Act limits the amount of an employee's earnings which may be garnished and protects an employee from being fired if pay is garnish-ed for one debt. This law is administered by the Wage and Hour Division of the Department of Labor's Employment Standards Administration.
Organizations Related to Debt Recovery Law
- ACA International Education Foundation - Ask Doctor Debt
Ask Doctor Debt was created by the ACA International Education Foundation to provide free and unbiased answers to consumers' debt questions. You can always be assured that no personal information is ever collected on this site and that users' privacy will never be compromised.
- Federal Trade Commission
The FTC deals with issues that touch the economic life of every American. It is the only federal agency with both consumer protection and competition jurisdiction in broad sectors of the economy. The FTC pursues vigorous and effective law enforcement; advances consumers’ interests by sharing its expertise with federal and state legislatures and U.S. and international government agencies; develops policy and research tools through hearings, workshops, and conferences; and creates practical and plain-language educational programs for consumers and businesses in a global marketplace with constantly changing technologies.
- USDOJ - Debt Collection Enforcement System
This system was established and is maintained to provide litigation/administrative support to the USAOs by (1) serving as an automated database for debt collection litigation; (2) performing such administrative functions as reconciling Department and client agency records, maintaining account data and managing the contract private counsel portfolios, etc.; and (3) creating an automated inventory of debt cases received from client Federal agencies and assigned to contract private counsel and to USAs in the districts.
Publications Related to Debt Recovery Law
- Consumer Action Handbook - Credit - Debt Collection
The Fair Debt Collection Practices Act applies to those who collect debts owed to creditors for personal, family and household debts. These include car loans, mortgages, charge accounts and money owed for medical bills. A debt collector is someone hired to collect money you owe.
- Council on Foreign Relations - Debt Recovery
The United States' growing debt is being viewed with increasing alarm internationally, as countries like Greece and Iceland struggle with burgeoning deficits and civil unrest. In February, the Obama administration created a bipartisan debt commission to address a debt that could grow to 64 percent of GDP in 2010.
- Filing Complaints against Debt Collectors and Creditors
State Attorney General on-line complaint forms for filing complaints against debt collectors and creditors who violate the Federal Fair Debt Collection Practices Act (FDCPA) and your State's debt collection and creditor collection laws.
- FTC - Debt Collection FAQs - A Guide for Consumers
If you’re behind in paying your bills, or a creditor’s records mistakenly make it appear that you are, a debt collector may be contacting you. The Federal Trade Commission (FTC), the nation’s consumer protection agency, enforces the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from you. Under the FDCPA, a debt collector is someone who regularly collects debts owed to others. This includes collection agencies, lawyers who collect debts on a regular basis, and companies that buy delinquent debts and then try to collect them.