Sample Hardship Letter: The Fair Debt Collection Practices Act is one of the written laws of the United States, which had been included in the United States Code as Title VIII of the “Consumer Credit Protection Act.” The main focus of this particular law is on the guaranteed “ethical practices” in the ways of collecting debts upon the consumers. It also seeks to present consumers with an opportunity to obtain and dispute legalization of any information regarding a particular debt so as to guarantee the data’s correctness.
In essence, Fair Debt Collection Practices Act encourages just, rational, and nondiscriminatory treatment of consumers by forbidding debt collectors from utilizing unjust, offensive, or misleading actions.
The Fair Debt Collection Practices Act is applicable to qualified debt collectors capable of collecting loans that they didn’t create. However, this act doesn’t theoretically pertain to department stores, banks, and other lending institutions that have their own debt collectors; no lending company of good reputation is allowed to make use of the said practices. Hardship Letter
Under the Fair Debt Collection Practices Act, the following provisions were made:
1. Debt collectors are only allowed to contact other people, aside from the debtor himself, only to find out any whereabouts of the debtor.
2. Debt collectors aren’t allowed to contact the debtor before 8:00 a.m. and after 9:00 p.m. local time.
3. Debt collectors aren’t permitted to intimidate, pressure, or make threats to the consumer with legal action or arrest if it is not duly planned, considered, or made known to third parties, or at least talk about debts with them.
www.ftc.gov/bcp/edu/pubs/consumer/credit/cre27.pdf
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