Consumer protection Law; Consumer credit protection

The Fair Debt Collection Practices Act or the FDCPA, is a consumer protection law. Consumer protection laws didn't always exist.  If a consumer defaulted on a debt they owed, they could face violent people attempting to collect a debt or face debtor's prison.

In the United States, consumers are protected by the FDCPA. The FDCPA is a federal law. Consumer laws, such as the FDCPA, not only protect consumers but set guidelines debt collectors must follow when they are attempting to collect a debt on behalf of a consumer's creditor.

When a debt collector can contact a consumer, which debt collections practices are unfair, who they can divulge personal information to and how to validate the debt with the consumer is outlined in the law. Consumer advocates began pushing for passage of the FDCPA in the latter part of the 20th century. Congress passed the FDCPA in 1978. The act was added to the Consumer Credit Protection Act, which was passed 10 years earlier in 1968.

Legislation was needed to protect consumers against unfair debt collection practices. The rise in credit cards only precipitated the push for a more stringent consumer protection law. Consumer after consumer in the 1950s applied for credit cards to buy the things they wanted. Credit cards had only been around for about 18 years when Congress passed the Consumer Credit Protection law. Consumer protections were non-existent when the credit card phenomenon grabbed hold of the nation in the early 1950s. More consumers were going into debt, creditors were making more money off of credit card interest payments and more consumers were defaulting on their debts.

With more debt mounting, the need for people to collect the debt was necessary. However, there weren't guidelines for debt collectors to follow when they pursued consumers to recover a debt on behalf of a creditor. This created a void in the debt collection industry, allowing the more ruthless debt collectors who operated under unfair business practices. Some debt collectors threatened violence and public ridicule to recover the debt. Consumers lost their jobs, their marriages failed and they felt like outcasts in their community as a result of some of the actions of debt collectors.

Today, a consumer's personal information is safeguarded thanks to the Consumer Protection law. Consumer protection laws are followed strictly by today's debt collection companies in the United States. A few, however, give debt collectors a bad name. 

NCO Financial Systems, Inc. is a business process outsourcing company that has been handling accounts receivable, call centers and debt collection activities on behalf of creditors for more than 83 years. We understand the need for a consumer protection law. Consumer protection laws, such as the FDCPA, are followed strictly by our organization.

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.