3 Dangerous FDCPA (Fair Debt Collection Practices Act) Myths

Think you've got the FDCPA (Fair Debt Collection Practices Act)
figured out? Don't be so sure. While nothing can take the place
of a lawyer's advice, if you've at least overcome these three
dangerous myths about the law, you may save yourself a lot of
money and heartache.

FDCPA Myth 3: the Fair Debt Collection Practices Act is the
only law governing collections

Fact: The FDCPA is a US federal law. Each state has additional
laws that govern fair debt collection practices. Some portions
of those laws may have been invalidated by the federal law.
But, as a general rule, state laws are valid if they provide
greater protections (or restrictions, depending on your point
of view), and invalid if they allow debt collectors too much
leeway. Meanwhile, other countries have their own laws, which
may or may not apply if the collector or debtor is currently
located outside the US.

Reality: it is important to keep in mind all the relevant state
laws. Those state laws may include the laws of up to three or
even more states: the debtor's current state of residence,
business, and/or work; the debt collector's state; and the
state of any outside collection agency. The multiplicity of
laws is just one reason why lawyers are so often brought into
the collections process, especially when the amounts are large.

Debt collections that cross national borders are notoriously
complicated, whether it's a US collector seeking payment from a
foreign national or vice versa. That's just one reason that
businesses that have a large customer base in another country
will often open a branch office there.
FDCPA Myth 2: if a collector violates fair debt collection
practices, the debt is thrown out.

Fact: it's true that unfair debt collection practices will
likely cost the collector the judge's sympathy if the
collections go to court. But the Act does not say that the debt
itself will necessarily be invalidated.

That may be why some unscrupulous collectors still violate the
law. Of course, as already noted, breaking the law is not a
good idea, since the collectors will lose much if not all of
whatever moral standing they might have had. Besides, who wants
to be sued for damages-especially by the person who still owes
you money?

Reality: it's in the best interest of anyone who owes money to
document any FDCPA violations, and in the best interest of debt
collectors to follow fair debt collection practices
scrupulously.
The Number-One FDCPA Myth: the Fair Debt Collection Practices
Act is hard to follow

Fact: the Act's requirements are nothing more than common sense
and basic courtesy. The days of debtors' prison or publishing
debtors' names in the newspaper are over, and threats are
strictly for the mafia. Any attempt to collect a debt through
humiliation or intimidation, or anything hinting at
intimidation or humiliation, should be avoided.

Reality: The vast majority of violations could have been
avoided if the debt collectors had simply put themselves in the
other person's shoes and thought about how they would feel if
they were treated in the same way. This also means that it is
not in fact easy for debtors to get out of their obligations by
turning the tables on the organizations to which they owe money.

In short, we've come a long way since the days when debtors
might have ended up in the stocks, and the FDCPA is largely to
thank. But if you take fair debt collection practices lightly,
you may find your troubles make a day in the stocks look
pleasant.


About The Author: Joel Walsh is a regular contributor to
Collection Agency Information
(http://www.collection-agency-information.com). Find out the
inside story on debt and collections with secrets gathered from
real collection agencies:
http://www.collection-agency-information.com/collection-agency-articles/collection-agency-articles.html