The Basics

One very important thing to remember when considering whether you have a claim under the FDCPA is that it only applies to third party debt collectors. These are typically debt collection agencies and lawyers. This means that the creditor (owner of the debt) is generally exempt from the Act. There is an important exception, however. Defaulted obligations of all kinds are purchased by certain companies for pennies on the dollar. These companies refer to themselves as distressed debt buyers . We refer to them as "bottom feeders" which more appropriately describes them. They become debt collectors when they purchase your debt from the original creditor when it is in default. Even though they are creditors they are covered by the FDCPA.

Types of Violations

The number and types of debt collection practices that violate the statute are too numerous to mention in this brief summary. However, we will attempt to describe a few of the most common that we see. I divide them into two types: technical violations which generally lead only to statutory damages and harassment and abuse which may entitle the consumer to actual damages as well as statutory damages.

Debt

Not every debt is covered by Act. The debt must be consumer debt. This means that it must arise from a consumer transaction. This generally includes a transaction primarily for personal, family or household purposes. Unfortunately, the Act won't protect you against a debt collector attempting to collect a business debt. Also, the collection of delinquent income taxes, penalties and traffic fines are not covered. Generally speaking, debts which don't arise from a contract such as those incurred as a result of an automobile accident where you cause property damage to another are not covered. However, if you should enter into a contract to pay this debt, then the debt is probably covered. Bottom line, the vast majority of debts will be covered by the FDCPA.

Technical Violations

I classify technical violations as those which don't necessarily cause you distress but, nevertheless, violate the law. These normally come in written form where the debt collector writes something which is not factually or legally accurate. The law states that it is unlawful to threaten to take any action which cannot possibly be taken. For example, if a debt collector threatens that if you are sued the creditor is entitled to attorney fees (this is not possible in Ohio and many states). The debt collector cannot misstate the character, amount or legal status of the debt. Frequently, the amount of the debt is inflated and/or there are charges added to the debt which are excessive or improper.