Civil Liability of Debt Collectors - What This Liability Includes

Okay, so we have all, or at least almost all of us have been in this situation: As soon as you turn twenty one to apply for a car loan or, you decide that you want to share your passion for fashion to the world and you apply for a bank loan, and you get approved. Upon approval, you will use the funds received for your intended purpose which was for that dream car, or to open your own shopping boutique.

That feeling of excitement and happiness rushing all over makes you feel on top of the world because you are getting that extra push knowing that someone is giving you a chance to achieve your goals. You then are directed to read the fine print which includes the stipulations and binding agreements you are held to for the term of the loan. When you're first, second and third payments come in and you are paying them as scheduled things are all good and well. But then, the fourth payment comes in at a time when you have to pay say three, or even four bills in conjunction to that loan bill.

After coming to this conclusion, you then call your loan representative telling him or her that you will be a bit late on your payment. The representative then refreshes your mind to that agreement that you signed on a clause that specifically states that all payments must be made on time in accordance to the contract that the consumer (you) signed; or else there will be a high interest amount that must be paid on top of the debt that is already owed. Now what? That deal that you made has a great possibility of lowering your credit score, which in result will make it difficult for you to get any more loans; this in addition to a snowball effect of other misfortunes.

Financial situations such as this and many more are why we have a myriad of laws and acts in place to protect someone from being adversely affected from the outcome of consumer debt. Now, let it be known that these laws and acts are not in place for those who choose to out of wrong reason not pay their bills. As many of us who believes that many of the laws that are intact are there to work against us, truth being, these laws are in place to work for us.

A prime example of such law and acts that are set in place for a financial situation regarding the civil liability of debt collectors comes from the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. This act impends civil liability on debt collectors for certain debt collection practices that are deemed illegal or prohibited. A debt collector who fails to abide by any part of the Act is to be held responsible for actual damages, costs, reasonable attorneys' fees and certain statutory damages set forth in the Act. On the other hand,if a debt collector substantiates their case with proof beyond a reasonable doubt that "The violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error" then the debt collector is not to be held in contempt in any action brought under the Act 15 U.S.C. § 1692k(c).

Congress brought about the FDCPA, or the Fair Debt Collection Practices Act in 1977, 91 Stat. 874. The core intent and goals for this Act being in place was to dispel of any debt collections that some companies may practice in that can be seen as obtrusive. Another goal that the Fair Debt Collection Practices Act is to achieve is to ensure that debt collectors who abstain from such practices are not disadvantaged in a competitive mannerism, and to promote consistent state action to which is to protect consumers 15 U. S. C. §1692(e). The Act regulates interactions between consumer debtors and "debt collector[s]," defined to include any person who "regularly collects... debts owed or due or asserted to be owed or due another" §§1692a (5), (6). Among all other things, the Act "forbids debt collectors from making false claims or accounts as to a debt's character, amount, or legal status, §1692e (2) (A); communicating with consumers at an unusual time or place" likely to be inconvenient to the consumer". §1692c (a) (1); or using obscene or profane language or violence or the threat thereof, §§1692 d (1), (2)". (Heintz v. Jenkins, 514 U.S. 291, 292-293).

This is just a snippet of the laws that Americans have on their side when their debt is getting too out of hand for them to handle. This is not a get out of jail free pass to wipe the slate clear of all debts that one has accrued.

There are forms of action for if one was to get into a financial situation such as this and many more. Getting a loan to launch your dreams can be an amazing thing with risks, but rewards as well.Your job is to do the research, ask all of the questions you need answered, or to take any other measures to be informed to protect yourself from being nipped in the behind from the debt shark. Ask now and you will know no worries of being in debt.

at 12:39 AM
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