Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act—A Very Brief PrimerNew Jersey Collections Attorney Representing Clients Seeking to Collect Debts in the Superior Court of New Jersey and the United States District Court for the District of New JerseyFair Debt Collection Practices ActIntroduction

The Fair Debt Collection Practices Act ("FDCPA"), is a Federal law governing the collection of certain kinds of debt. In order to understand what falls within the purview of this law, it is important to distinguish between "commercial" debt and "consumer" or "retail" debt. A commercial debt is typically viewed as an obligation for goods sold or services rendered in connection with the operation of a business. Debts incurred by individuals for personal, household or family purposes are consumer debts. Generally speaking, the FDCPA applies to consumer debt.

The FDCPA is a relatively straight-forward statute. It was enacted in response to legislative findings of evidence of abusive, deceptive and unfair debt collection practices. In enacting this law, Congress wanted to eliminate these practices but, at the same time, not place debt collectors who refrain from abuse at a competitive disadvantage in collecting debts.

Conduct Prohibited by the FDCPA

The FDCPA prohibits certain types of "abusive and deceptive" conduct when attempting to collect debts by regulating the following conduct:

  • The hours during which a debt collector may contact a debtor by phone;
  • The debt collector's failure to cease communication with the debtor upon request;
  • Causing a telephone to ring, or engaging any person in telephone conversation, repeatedly or continuously;
  • Communicating with debtors at their place of employment;
  • Contacting debtors known to be represented by counsel;
  • Communicating with debtors after they have requested validation of the debt;
  • Misrepresentation or deceit;
  • Publishing the consumer's name or address on a "bad debt" list;
  • Seeking unjustified amounts;
  • Threatening arrest or legal action that is either not permitted or actually contemplated;
  • Using abusive or profane language;
  • Communication with almost all third parties concerning the debt;
  • Contact by embarrassing media (e.g., a post card that is easily read); and
  • Reporting false information on a debtor's credit report or threatening to do so in the process of collection.
Required conduct

The FDCPA requires debt collectors to do, among other things, the following:

  • Identify themselves and notify the consumer, in every communication, that the communication is from a debt collector, and in the initial communication that any information obtained will be used to effect collection of the debt;
  • Give the name and address of the original creditor (company to which the debt was originally payable) upon the consumer's written request made within 30 days of receipt of notice required by the statute;
  • Notify the consumer of their right to dispute the debt, in part or in full, with the debt collector;
  • Provide verification of the debt; and
  • File suit in a proper venue.

The US Federal Trade Commission is formally charged with enforcement of the FDCPA. However, the primary enforcement mechanism is by private action. Put somewhat differently, debt collectors who fail to comply with the law's requirements can be sued by the debtors who owe them money. These lawsuits can force the debt collector to pay awards to the debtor that are out of all proportion to the amount the collector originally sought.

The message of the FDCPA is really very simple - debt collectors must comply with proper debt collection procedures when attempting to collect debts subject to the statute.

Against this backdrop, it is imperative to use a collection attorney who understands the laws and procedures governing collection practice, including the special requirements that the FDCPA imposes upon consumer debt collection. The failure to do so could create exposure to liability far exceeding the amount owed by the debtor.

We are a New Jersey debt collection firm. If you are attempting to collect debts in New Jersey, contact Mr. Friedman at 800-361-6554 to discuss your collection needs.

Please read about the following topics of interest to our collection clients.

Need to know more about State and Federal collection laws? Call us at 800-361-6554 (toll free) or contact us online.

Client Reviews
★★★★★
"I hired Mr. Friedman to represent my son in a criminal matter that could have landed him in jail. Nobody in our family had ever been involved with the criminal justice system before, so this was all very new to us. He was very patient, answered all of our questions, and made sure we understood everything each step of the way. By the time the case was over, my son had a reduced charge for which he only had to pay some fines." Anonymous
★★★★★
"Mr. Friedman represented me when I was one of several students caught with drugs in a college dorm room. I was set to graduate at the end of the semester, and thought this case would ruin my life. He got my charges dismissed, and the record expunged. This lawyer was a total lifesaver!" Anonymous
★★★★★
"Our daughter has mental health issues. She got into a scuffle with the police and was charged with assaulting an officer. Our attorney, Jim Friedman, was able to show the prosecutor and Judge that the real problem here was her mental stability. She was placed on probation and avoided jail time. Most other lawyers we spoke to refused to take this case, but Jim Friedman took it and got us a great result. Thank you Mr. Friedman!" Anonymous
★★★★★
"I had federal criminal charges and felt totally lost. I was one of who knows how many defendants in this case, and I read on the Internet that almost everyone in federal court end up with a prison sentence, so I was really scared. My first lawyer, who told me that I would probably spend at least some time in prison, barely gave me the time of day after I paid him. Then I hired Jim Friedman to represent me. He stayed with me throughout the entire process. He was always available to answer my questions, and never let me lose hope. He negotiated aggressively with the federal prosecutor and I ended up with a short term of probation. I knew I would get convicted of something, but this lawyer kept me out of jail." Anonymous
★★★★★
"The only part of my trial that was better than watching Mr. Friedman question the witnesses was when the jury came out and said “not guilty” over and over again. You have to see this lawyer in court!" Anonymous