unfair practice under fdcpa

Hi Mochrie,

Welcome to Mortgagefit forum.

Under Fair Debt Collection Practices Act (FDCPA), a debt collector is not allowed to take unfair steps for collection of debt. If any of following is done by debt collector then it will be considered as violation of Section 808 of FDCPA:

1. Deposit or threaten to deposit any postdated check prior to date mentioned on such check.



2. Collect any amount which is not expressly authorized to be collected by the agreement creating the debt. Such an amount can be fee, interest or any expense related to the principal obligation.



3. Cause charges for collect phone calls or telegram fees to a person for communication made to him by concealing the actual purpose of such communication.



4. Ask for any postdated check for the purpose of instituting or threatening to institute criminal prosecution.



5. Communication by post card concerning the debt with the consumer.



6. Accept any check which is postdated by more than 5 days from any person if that person is not informed in writing of their intent of depositing that check not earlier than 3 days or after 10 days of depositing it.



7. Use any language or symbol on any envelope used to communicate with a consumer through mails or telegram which is not debt collector's address.



8. Take or threaten to take non-judicial action which can result in dispossession of property if -
   
   • Debt collector does not currently intend to take possession of property.
   
   
   • Exemption laws applicable on that property will not allow for such dispossession.
   
   
   • No right to claim possession of the property as collateral against any enforceable security interest.

Colin

thanks colin i had one more question, where a legal action can be started by debt collector against any consumer, thanks

Hi Mochrie,

In case the action is for enforcing interest in real property which was used for securing consumer's obligation to pay, then such legal action can only be started in a judicial district where real property is located.

In other situations where real property is not involved;

Legal action can only be started in the judicial district where consumer signed the contract, for violation of which he has been sued, or

Judicial district where consumer resides at the start of such legal action by debt collector.

I once received a postcard from a debt collector - it just so happened to be delivered to my neighbor's house - how embarassing when they returned it to me. What course of action could I have followed against the debt collector for publicizing my debt on a postcard?

Hello Denise,

Under the Fair debt Collection Practices Act, publicizing a debtor's obligation, that is the outstanding debt balance, is prohiited on the part of debt collectors. I shall suggest that you talk to a debt attorney and seek legal advice.

However, if you are not going through any problems as such due to the letter being delivered to the neighbor's house, then it is better not to go for legal action. This is because any such legal action would require you to pay a large sum of fees.