What does the Fair Debt Collection Practices Act prohibit?

The Fair Debt Collection Practices Act (FDCPA) is a federal law that aims to protect consumers from abusive, deceptive, and unfair debt collection practices. One of the key prohibitions of this act is against harassment and deception by debt collectors. This means that debt collectors cannot engage in actions that would be considered intimidating or misleading, such as using threatening language, making false statements about the amount owed, or contacting consumers at inconvenient times or places. The act is designed to ensure that consumers are treated fairly and with respect in the debt collection process, providing a level of protection for those who may be struggling with financial obligations.

In contrast, issuing credit without verification pertains to credit management practices rather than debt collection, raising interest rates on existing debts involves lending terms that are not governed by the FDCPA, and collecting unpaid fees from banks is a different aspect of financial transactions unrelated to the practices that the FDCPA addresses.