Courts Ruled that Debt Buyers are Bound by FDCPA

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The Fair Debt Collection Practices Act makes a distinction between original creditors and third-party debt collectors. The FDCPA applies only to third-party debt collectors. So, for example, if you have an overdue bill at a store and a store employee calls in an attempt to collect the debt, the Fair Debt Collection Practices Act doesn’t apply. However, if the store hires an outside debt collection agency to call you and collect the debt, the Fair Debt Collection Practices Act does apply since the debt collection agency is a third party.

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Debt buyers have attempted to argue in court that they do not have to abide by the Fair Debt Collection Practices Act. Their argument went something like this: Because we have purchased the debt, we own it, and are thus original creditors and not third-party debt collectors. Rightfully so, courts have rejected that argument and have ruled that debt buyers are not exempt from the Fair Debt Collection Practices Act.

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If a debt buyer has been calling you, to speak with a representative directly and immediately call (470) 353 - 8870 for a free, no obligation case evaluation. If a debt buyer has violated the Fair Debt Collection Practices Act, you’re entitled to file suit in federal court, and could be awarded up to $1,000.