How can you, as a consumer, protect yourself from debt collectors using unfair, deceptive, or abusive practices to collect consumer debts?  We will have a 3 part series diving into these topics.

In an era where accessibility is everything and various forms of communication have now emerged, it’s easy to see how consumers can be more susceptible to abusive debt collectors.

Fortunately, under the Fair Debt Collection Practices Act (FDCPA), debt collector protocols are set out on what they can and cannot do when trying to collect a debt. Moreover, the FDCPA gives rights to debtors who have been treated wrongly by debt collectors.

So, who is protected under the FDCPA?

A consumer is any natural person obligated to pay a debt. The term consumer does not apply to corporate entities.

Part 1: Debt and Debt Collectors

What is a debt collector?

A debt collector is a person or company who regularly collects debts owed to another person. Debt collectors may include collection agencies, attorneys whose practice includes regular debt collection, and third-party debt buyers.

However, under the FDCPA, the following persons/activities are excluded from the definition of debt collectors:

• Debts not in default
• The service of legal process for debt collection
• Credit counseling by a nonprofit agency
• A person or entity whose primary business is the enforcement of debt collection
• Debt collection incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement
• The collection of debts by a party commonly owned by the creditor if the collector works only for the affiliate and debt collection is not the affiliate’s principal business
• A person purchasing debt, whether in default or not, for their own account

What is considered debt?

A debt is any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the debt was primarily incurred for personal, family, or household purposes.

Such debts include mortgages, car loans, credit cards, medical debts, utility bills, and other consumer debts.

On the other hand, the FDCPA does not apply to the collection of business debts. Other debts not covered include:

• Child support,
• Fines for parking and other code violations, and
• Damages owed as a result of a car accident or property damage

Stay tuned for Parts 2 and 3! If you have a debt collector seeking collections action against you, contact Johnston Tomei Lenczycki & Goldberg LLC for a complimentary consultation. We will review your case for fair debt collecting practices and offer guidance in defending your case. Call us today at (847) 549-0600 or email us at info@lawjtlg.com to schedule a free consultation.