9
Debt Collection Laws, Rules, and Regulations
As a first-party collector you need to follow all state laws in the state where you reside and also the state where your debtor resides. Though we’ve already discussed some of these state laws, there are some other laws with which you may want to be familiar and keep an eye on, especially since they are changing as of the date of this book’s printing. These are:
- CAN-SPAM Act
- Electronic Funds Transfer Act (EFTA)
- FDCPA—Fair Debt Collection Practices Act
- FCRA—Fair Credit Reporting Act
- Gramm-Leach-Bliley Act
- Health Insurance Portability and Accountability Act (HIPAA)
- Red Flags Rule
- Service Members Civil Relief Act
- Telephone Consumer Protection Act
- Truth in Lending Act
- U.S. Bankruptcy Code
- End Debt Collector Abuse Act
- Consumer Financial Protection Act
Business owners and third party collection agencies have to follow different laws. Many company owners are confused about whether they have to follow the Fair Debt Collection Practices Act, which broadly defines a debt collector as “any person who uses any instrument of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.” While the FDCPA generally only applies to third party debt collectors—not internal collectors, credit managers for a creditor, or business owners collecting their own debts—some states ...
