The Fair Debt Collection Practices Act was a significant piece of legislation to protect debtors. Explain why it was needed and discuss some of its protections

Answer 1

Debtors were subject to abusing practices by collection agencies and creditors. In response, the Act prohibits:
- Making late-night and early morning telephone calls.Debt collectors cannot contact consumers by telephone outside of the hours of 8:00 a.m. to 9:00 p.m. local time.
- Using obscene and abusive language.
- Threatening to notify employers.
- Representing oneself as being the police or an official government agent.
- Failing to cease communication upon request.
- Continuing communication when refused. Debt collectors cannot continue to communicate with consumers after receiving written notice that the consumer wishes no further communication or refuses to pay the debt. There are a few certain exceptions, such as acknowledging the request to terminate communication or notifying the consumer that the collector intends to file a lawsuit or pursue other remedies.
- Using the phone to harass. Debt collectors cannot repeatedly call or engage any person in telephone conversation repeatedly or continuously with the intent to annoy, abuse, or harass.
- Contacting at work. Debt collectors cannot attempt to contact the consumer at work once they are advised it is unacceptable.
- Contacting a consumer known to be represented by an attorney.
- Publishing the consumer's name or address on a "bad debt" list.
- Seeking excessive amounts. Debt collectors cannot see unjustified amounts of money as payment of the debt.
- Threatening arrest or other legal action that is either not permitted or not actually contemplated.
- Telling third parties about the consumer's debt.
- Contacting consumer by embarrassing media. This includes using a postcard with any language or symbol other than the debt collector's name and address.
- Reporting false information on a consumer's credit report. Debt collectors also cannot threaten to do so.