From a Credit collections site

Discussion in 'Credit Talk' started by FYI, Apr 3, 2001.

  1. FYI

    FYI Guest

    The American Collectors Association, Inc. (ACA) firmly believes in the strong collection practice standards set forth in the federal Fair Debt Collection Practices Act (FDCPA). The Act, also known as Public Law 95-109 (15 U.S.C. Sections 1692 through 1692o), was passed by Congress in 1977 to combat consumer abuses by debt collectors.

    The FDCPA's enactment--complete with civil liability for noncompliance--ensured that all debt collectors would follow a consistent, nationwide standard of fair treatment of consumers. In addition to prohibiting harassment and abuse by collectors, the law also spells out proper procedures for obtaining debtor location information, communicating with consumers and disclosing that consumers have the right to dispute the validity of a debt.

    After the Act had been implemented for some time, it became clear that new kinds of abuses were cropping up. FDCPA litigation has strayed from legitimate attempts to prohibit abusive debt collection practices. Instead, inconsistent court decisions about the technical requirements of the FDCPA have created a virtual industry for a growing number of predatory attorneys, who use the Act's ambiguities for their own financial gain--and to get their clients out of paying just debts. By amending the FDCPA, Congress can redirect the courts to the original intent of the law: protecting debtors from abusive collection practices.

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