The Fair Debt Collection Practices Act (FDCPA) prohibits harassment or abuse in collecting a debt such as threatening violence, use of obscene or profane language, publishing lists of debtors who refuse to pay debts, or even harassing a debtor by repeatedly calling the debtor on the phone. Also, certain false or misleading representa�tions are forbidden, such as representing that the debt collector is associated with the state or federal government, or stating that the debtor will go to jail if he does not pay the debt. This Act also sets out strict rules regarding communicating with the debtor.
The FDCPA applies only to those who regularly engage in the business of collecting debts for others -- primarily to collection agencies. The Act does not apply when a creditor attempts to collect debts owed to it by directly contacting the debtors. It applies only to the collection of consumer debts and does not apply to the collection of commercial debts. Consumer debts are debts for personal, home, or family purposes.
Collection Letter to a Consumer Debtor Dear (Name of Debtor): Your name was brought to our attention to collect from you the entire balance of a debt you owed (Name of Creditor). As of (date of balance), the amount of the debt is $______________. If you want to resolve this matter without a lawsuit, you must, within (time period) of the date of this letter, either pay $_____________ against the balance that you owe (unless you have paid since your last statement) or call (Name of Creditor) at (telephone number of creditor) and work out arrangements for payment with it. If you do neither of these things, we will refer this matter to an attorney to file a lawsuit against you for the collection of this debt. Federal law gives you 30 days after you receive this letter to dispute the validity of the debt or any part of it. If you do not dispute it within that period, we will assume that it is valid. If you do dispute it by notifying us in writing to that effect, we will, as requi
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