What is the Fair debt Act?

The Fair Debt Collections Practices Act, or the Fair Debt Act (FDCPA), is a federal law that outlines how the debt collection industry must pursue collecting a debt from consumers on behalf of a creditor.

Congress passed the Fair Debt Act in 1978. The act was added as Title VIII of the Consumer Credit Protection Act.  The Federal Trade Commission, or FTC, is responsible for enforcing the Fair Debt Act.  The act was enacted due to evidence that some debt collectors were using abusive, deceptive and unfair debt collection practices. Abusive debt collection practices perpetuated the number of personal bankruptcies, marital instability, job loss and invasion of an individual's privacy. 

The FDCPA broadly defines a debt collector as “any person who uses any instrumentality of interstate commerce or the mail in any business the principal purpose of which

is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.”

The FDCPA defines a creditor as “any person who offers or extends credit creating a debt or to who a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.”

The Fair Debt Act protects consumers

The FDCPA gives consumers certain protections against debt collectors. There are more than a dozen practices the law prohibits. Here are few guidelines debt collectors must follow:

• Debt collectors can only telephone consumers between the hours of 8 a.m. and 9 p.m. local time.
• Debt collectors cannot threaten the use of violence against a consumer in an attempt to collect a debt.
• Debt collectors cannot reveal a consumer's personal information to a third party.
• Debt collectors cannot publicly embarrass a consumer by placing their name and address on a “bad debt” list.
• Debt collectors cannot use obscene or profane language.

NCO Financial Systems, Inc and the Fair Debt Act

NCO Financial Systems, Inc. is global leader in providing business process outsourcing, such as call centers, accounts receivable and debt collection services. At NCO Financial Systems, Inc. we take our debt collection operations seriously. We take every opportunity to ensure our customer service representatives understand the Fair Debt Act and treat consumers with professionalism. We take every step to make sure we are talking to the consumer who has the debt, and they know who we are and that we are contacting them in attempt to collect that debt on behalf of one of their creditors. To communicate with consumers NCO Financial Systems, Inc. created a consumer website at www.consumerhelpunit.org. When consumers visit the site, they can learn more about the Fair Debt Act and the debt collection industry.

We are required under state and federal law to notify consumers of the following rights. This list does not contain a complete list of the rights consumers have under state and federal law. Please click this link for important information about your rights. State and Federal Disclosure Link.