Friday, February 18, 2011
Consumer Protection During the Debt Collection Process
Consumer protection is a broad term used to describe many different areas of the law like debt collection practices, products liability or unfair and deceptive trade practices. What is common among all areas of consumer protection law is the focus on preventing injury or harm to the consumer in free market transactions. This is certainly the case in the area of consumer debt collection, where the law is geared at preventing abuse, harassment, unfair and deceptive collection practices, public embarrassment, and the disclosure of private information.
Florida's Consumer Collection Practices Act (FCCPA), and the companion federal statute the Fair Debt Collection Practices Act (FDCPA) are the two key consumer protection statutes during the debt collection process. Many legal scholars and courts have found the FCCPA to be a laudable attempt to curb the abusive practices in the creditor-debtor relationship. Because of the FCCPA, consumers in the state of Florida are protected during the entire debt collection process.
Another powerful consumer protection exists that can also drastically limit creditor calls. Creditors can only contact a consumer's cell phone if they have permission to do so. When done properly, a consumer can revoke the permission of any creditor to contact their cell phone. In the digital age where a cell phone is now a portal to our social and business lives, repeated incoming calls from creditors are distracting, disturbing, and disruptive.
The debt collection process is a very stressful situation. The consumer protections statutes provide ways to control the creditor and limit the stress. Consumers can also take comfort in the fact that violations of the consumer protection statutes can result in the award of money damages and the recovery of attorney fees and costs for the consumer. These violations can also be used to leverage settlements and offset consumer debt.
The exercise of consumer rights and the policing of creditor collection activity is the personal responsibility of the consumer. By acting early in the collection process, with the assistance of an attorney, a consumer can maximize the consumer protections allowed under law.