Some Debt Is Not Covered By The FDCPA – Business Debt

by Andy Miofsky, Illinois Bankruptcy Attorney

The Fair Debt Collection Practice Act FDCPA regulates collection activity of consumer debt, debt arising out of transactions that are primarily for personal, household or family purposes, 15 U.S.C 1692a5. Business debt and the debt collectors who collect it are not covered by the FDCPA. The lesson herein is that not all debt collectors are alike.

While some collectors and attorneys are prohibited from taking unfair collection tactics, others are not so restrained. And they know it. Often clients call my consumer law office to tell me about harassing and vulgar phone calls, or out of area lawsuits, and ask “Can they do that”? Granted, the vast majority of individual debt is not business related, however, it is important to know the distinction when evaluating a case for possible violation of the FDCPA.

Tagged as: FDCPA

Related Posts

  • FDCPA's Relation to State Laws

    by Bankruptcy Law Network

    The Fair Debt Collection Practices Act, Section 1692n, deals with the issue of conflicting Federal and State debt collection laws.  It provides that the FDCPA does not exempt any person subject to the FDCPA from complying with State debt collection practice laws.  There is one exception – if the FDCPA and the corresponding State law are [...]

    Click to continue

  • Is All Debt Collection Governed By The FDCPA?

    by Karen Oakes, Southern Oregon Bankruptcy Attorney

    In order for a debt to be governed by the Fair Debt Collection Practices Act, there are some requirements: The debt must be a consumer debt: The debt must have been incurred for personal, household, or family reasons; A debt collector must be involved: A debt collector (not the original creditor) collects for another; The [...]

    Click to continue

  • Debt Collection Methods & The FDCPA – Part One: Letters

    by Bankruptcy Law Network

    There are generally three debt collection methods that debt collectors use:  letters, telephone calls, and credit reporting.  These methods fall under the category of communications as defined by the Fair Debt Collection Practices Act.  Each method is discussed in this series with a brief commentary regarding what is and is not permissible (and in some [...]

    Click to continue

  • Debt Collection Methods & The FDCPA – Part Three: Credit Reporting

    by Bankruptcy Law Network

    There are generally three debt collection methods that debt collectors use:  letters, telephone calls, and credit reporting.  These methods fall under the category of communications as defined by the Fair Debt Collection Practices Act.  Each method is discussed in this series with a brief commentary regarding what is and is not permissible (and in some [...]

    Click to continue

  • Pennsylvania State Law Mirrors the FDCPA

    by Bankruptcy Law Network

    The Pennsylvania Fair Credit Extension Uniformity Act provides Pennsylvania consumers with the same protections as the FDCPA.  In addition, it prohibits abusive collection efforts by creditors.  (The FDCPA only applies to debt collectors.)  Like the FDCPA, the PA FCEUA prohibits: Communication with third parties regarding the debt Harassment, abusive, or oppressive conduct False, deceptive, or [...]

    Click to continue