Who is covered by the Laws?
Federal and state laws governing debt collection, including the Fair Debt Collection Practices Act ("FDCPA"), apply only to certain kinds of debt and certain kinds of debt collectors. Understanding who is covered by debt collection laws is important to your ability to protect your rights and to take recourse against collection agencies that are violating these laws. Talking with an experienced collection abuse lawyer can give you the information you need.
The FDCPA applies only to debts that are considered personal, family or household debts. These debts may be associated with credit cards, retail credit cards, medical bills, car loans and mortgages. Pennsylvania state laws also cover these kinds of consumer debt. These laws do not apply to business debts, even for family businesses and businesses run out of people's homes. Contact our firm to determine if your debt is covered under the FDCPA and state collection laws.
Debt Collectors Covered by Federal Debt Collection Laws
Only agencies and people who regularly collect consumer debts are covered under the FDCPA. Debt collection agencies and lawyers who perform collection activities on a regular basis must comply with this Act. In-house collection agencies, however, are not covered by the FDCPA and are not subjected to the rules and regulations under this federal law.
For example, a department store that has its own store credit cards may use an internal collections department to pursue debts from consumers. The activities of this collections department are not covered under the FDCPA. If the store uses an outside collection agency to retrieve debts, however, that outside agency is covered by the FDCPA. Even in cases where an in-house agency suggests that collections are being performed by a third party, the FDCPA will likely apply to their representation.
Find Out More About Your Specific Situation
As with most legal issues, the specific circumstances of your situation will have an effect on what is covered under the law and what legal remedies are available for you to pursue in a court of law. At the law firm of Boyle, Neblett & Wenger, in Pennsylvania, we can provide honest advice about the collection activities used against you and whether they violate state or federal laws. Contact us toll free at 866-661-7930 for a free case evaluation.
