Not content to hound people over the phone and postal service, debt collection agencies have lately expanded their efforts to social media websites. Usually, collection agencies use social media sites (Facebook, Twitter, LinkedIn, Google Plus, etc) to find people they’ve already contacted by phone and mail, and then openly harass them in these public spheres.
The Fair Debt Collection Practices Act (FDCPA) was passed by Congress in the late 1970s; the law was set up to protect consumers from abusive debt collectors. But the FDCPA could hardly anticipate the creation of the internet and social media websites; it relates primarily to phone, mail, and fax communications. Government regulation has gradually caught up with new technology. In 2010, Congress granted new powers of oversight to the U.S. Consumer Finance Protection Bureau (CFPB); the agency plans to use that authority to enact new rules this year, and some of these rules will govern how debt collectors can use social media sites. The director of the CFPB explained at a recent press conference, “We will be using both our supervision authority and our enforcement authority to oversee the market and go after bad actors who flout the law.”Larger debt collection companies (Encore Group, Asta Funding) have said they will be making changes to their operations, in response to the coming stronger consumer protections. The debt collection’s trade association, ACA International, has already advised its members not to use social media websites; the group concedes that using these sites may violate the FDCPA (which forbids disclosing details of a debt to third parties).
If a collection agency has harassed you, you may be entitled to money damages up to $1,000.00, based on the FDCPA, which has been around since 1977. The FDCPA is a federal law that applies to every state. In other words, everyone is protected by the FDCPA. The FDCPA is essentially a laundry list of what debt collectors can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt. Plus, the FDCPA has a fee-shift provision. This means, the collection agency pays your attorney’s fees and costs.
Know Your Rights When it Comes to Debt Collectors
The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from third-party debt collectors. The FDCPA is a federal law that applies to every state. In other words, everyone is protected by the FDCPA. The FDCPA is essentially a laundry list of what debt collectors can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt.
- Damages: if a collection agency violates any section of the FDCPA, the consumer is entitled to statutory damages up to $1,000.00.
- Attorney’s fees: The FDCPA has a fee-shift provision. This means, the collection agency pays the consumer’s attorney’s fees and costs.
- Debt that is covered by the FDCPA: only consumer debt, such as personal, family, and household debts. For example, money you owe on a personal credit card, an auto loan, a medical bill, or a utility bill. The FDCPA does not cover debts you incurred to run a business, or debts regarding unpaid taxes, or traffic tickets.
- The FDCPA only applies to 3rd-party debt collectors: the FDCPA defines a debt collector as any person who regularly collects, or attempts to collect, consumer debts for another person or institution. In short, only third-party debt collectors are bound by the FDCPA. That is, original creditors, such as credit card companies and banks are not bound by the FDCPA.
About Mike Agruss Law
Mike Agruss Law was founded in March 2012. Since then, they have quickly grown to include four lawyers, a paralegal, and several legal assistants. They are an entirely paperless operation, instead using digital case management software. The firm’s consumer rights practice helps consumers with debt collection harassment, robocalls, credit report problems, and deceptive business practices.
