WHAT IS THE FCRA AND THE FDCPA?
FCRA
The Fair Credit Reporting Act (FCRA) is a federal law that helps to ensure the accuracy, fairness and privacy of the information in consumer credit bureau files. The law regulates the way credit reporting agencies can collect, access, use and share the data they collect in your consumer reports. The federal Fair Credit Reporting Act (FCRA) promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies.
KNOW YOUR RIGHTS
01
You have the right to dispute incomplete or inaccurate information.
If you identify information in your file that is incomplete or inaccurate, and report it to the consumer reporting agency, the agency must investigate unless your dispute is frivolous.
02
Consumer reporting agencies must correct or delete inaccurate, incomplete, or unverifiable information
Inaccurate, incomplete or unverifiable information must be removed or corrected, usually within 30 days. However, a consumer reporting agency may continue to report information it has verified as accurate.
03
You may seek damages from violators.
If a consumer reporting agency, or, in some cases, a user of consumer reports or a furnisher of information to a consumer reporting agency violates the FCRA, you may be able to sue in state or federal court. If you can show that the CRA, information furnisher, or entity using the information willfully violated its obligations under the FCRA, then you may be entitled to recover up to all of the following damages:
-Basic Damages (pick one):
-If the violator was an individual who lied to get your credit report, or used it for an improper purpose, then the greater of:
-Punitive damages, as decided by the court.
-Attorneys’ fees and costs.
04
Damages for a Negligent Violation
You are also entitled to damages if you can show that the CRA or other entity negligently failed to comply with its obligations under the FCRA. Damages here include:
FDCPA
The Fair Debt Collection Practices Act, or FDCPA is a federal statute that was signed into law in 1977 with one primary purpose: to set the rules as they pertain to the actions of third-party debt collectors or, informally, collection agencies. The FDCPA not only provides a variety of consumer protections from abusive debt collection activities, but also sets the rules that apply to debt collectors.
The FDCPA puts limits on the parties’ debt collectors can contact and when they can do so. Debt collectors are only allowed to contact debtors between 8 a.m. and 9 p.m. And contrary to what you may have heard, they are allowed to call you at work—but only if your employer allows you to receive such calls.
Debt Collection Practices Prohibited by FDCPA
Calling the debtor repeatedly to harass them or calling any time outside of the aforementioned 8 a.m. to 9 p.m. time limit.
Threatening to sue the debtor, unless the debt collector actually intends to do so.
Threatening violence or physical harm against the debtor.
Communicating with the debtor if the debt collector knows an attorney is representing the debtor as it relates to their debt.
Depositing a post-dated check, sent by the debtor, earlier than the date on the check.
Making any threat of action that cannot be legally taken, such as suing to collect debts for which the statute of limitations has expired.
Using obscene language with the debtor.
Publishing your information as part of any list of consumers who, allegedly, refuse to pay their bills.
Misrepresenting their identity when they call you.
Adding interest or fees to the amount collected, unless it's allowed contractually or by law.
What Is Your Legal Recourse Under FDCPA?
If you believe your rights have been violated and you’ve been subjected to abusive or illegal debt collection practices, you may be able to take legal action.
Generally, you will have one year from the date of the alleged violation to file a lawsuit against a debt collector. After one year, the statute of limitations expire. You can either file the lawsuit on your own or hire an attorney to file on your behalf. You can recover up to $1,000 of “statutory” damages, which is the limit set by the FDCPA. Actual damages you may have suffered have to be proven at trial. Because the FDCPA is what’s formally referred to as a “fee-shifting statute,” you may be able to cover your attorney’s fees if you win at trial.
You can also report what you believe is an FDCPA violation to the Consumer Financial Protection Bureau using their online complaint form. You’ll be able to identify the exact alleged violation from their list of options.