The Fair Credit Debt Collections Practices Act pertains to consumer credit and has very little relevance to businesses that extend credit to other businesses. However, people employed in business to business collections should familiarize themselves with some of the key elements of the legislation. It simply makes good sense to act in a civilized and businesslike manner when dealing with past due debtors. |
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The FDCPA applies to: Third party collection agencies Collection attorneys Repossession companies Debt poolers Check guarantee companies |
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The FDCPA generally does not apply to: Creditors collecting their own debts Finance companies Government employees Business to business credit/collections |
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Consumers are protected against invasion of privacy, harassment, abuse, false or deceptive representations, unfair or unconscionable collection methods. Prohibited acts include: Contact at unusual or inconvenient times. Contacting a debtor that is known to be represented by an attorney. Contacting a consumer at work. Informing third parties of the consumer's indebtedness. Contact that is harrassing, oppressive, abusive, threatening, obscene or profane. Repeated or continuous telephone calls intended to abuse or annoy. Representations which are false, misleading or deceptive. Falsely imply that the collector is affiliated with the government. Threatening unlawful or unintended actions, including legal action. |
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Business to business collections allows collectors a great deal more freedom under this law than consumer collections. However, it is advisable that business creditors maintain the highest level of professional standards when pursuing past due debts. Generally, the final option in collecting on a delinquent account is to file suit in a court of law. What you really don't want to have happen is for evidence to arise that shows to the court that you acted in a less than professional manner in pursuing your claim. This can be an embarrassment for both you and your company. Always be professional in how you conduct yourself. For additional resources, we suggest that you review our database of standard collection forms and letters. |
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For a full text of the actual act, you may follow this link. |
Overview |
Who it Excludes |
Who it Includes |
What it Forbids |
Summary |