What is the Fair Debt Collection Practices Act?

By Aaron Sarentino Reviewed by Minh Tong Updated Nov 21, 2022
What is the Fair Debt Collection Practices Act?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that protects consumers from unfair and abusive debt collection practices

Under the FDCPA, creditors, debt collectors, and other debt collection agencies are not allowed to engage in abusive or unfair practices when attempting to collect debts from consumers. A few examples of these prohibited practices include: 

  • contacting consumers at inconvenient times or locations
  • using threats and intimidation tactics
  • making repeated phone calls without leaving a message
  • sharing consumer information with other debt collectors without the consumer’s consent

The FDCPA is one of the most significant consumer protection laws in the United States and has helped to ensure that creditors and debt collectors are held accountable for their actions. While the law does not eliminate or prevent all unfair collection practices, it has provided a framework for monitoring and regulating debt collection activities.

When was the Fair Debt Collection Practices Act Passed?

The Fair Debt Collection Practices act was passed in 1977, following a growing number of complaints about inequitable and aggressive debt collection practices by creditors and other collection agencies.

Does the Fair Debt Collection Practices Act apply to businesses?

Unfortunately, no. The FDCPA only applies to a consumer’s debt for household, family, or personal reasons. Businesses and companies are not covered by the FDCPA.

If you’re dealing with a creditor or a debt collection agency, it is crucial to understand your rights under the Fair Debt Collection Practices Act. If you believe that a creditor or debt collector has violated your rights under this act, you may have grounds for filing a complaint and seeking legal recourse. To learn more about the FDCPA and what it entails, you can speak with an attorney or visit the website of the Federal Trade Commission. With this valuable information and resources at your disposal, you can take steps to protect yourself from unfair and abusive debt collection practices.

Can’t keep the debt collectors away? Talk to the financial experts at Americor.


Aaron Sarentino

Aaron oversees executive, administrative and management functions for the firm. Aaron has a Bachelors in Business Administration from Pepperdine University. He is responsible for helping customers at every stage of the debt settlement process and focused on building loyalty to ensure long-term client retention by addressing customer issues. Aaron plays a pivotal role in the upliftment of the Americor team to ensure the best possible customer experience for clients.