Generally, the FDCPA excludes from its provisions:

1. Creditors Collecting Their Own Debts, Retail Stores, Banks, Finance Companies - 15 U.S.C. 1692a(6).
2. Assignees Before Default, Car Finance Companies, Mortgage Servicing Companies - 15 U.S.C. 1692a(6). Read the rest

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Generally, the following must abide by the FDCPA when collecting consumer debts:

1. Collection Agencies - any person whose principal business is collecting debts and any person who regularly collects debts owed to another (15 U.S.C. Section 1692a(6)).
2. Attorneys - any attorney who regularly collects consumer debts owed or due or asserted to be owed or due another (Pub. L. No. 99-361, 100 Stat. 768 (effective July 9, 1986.)) Read the rest

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The Fair Debt Collection Practices Act (FDCPA) protects consumers obligated or allegedly obligated to pay any debt.  It also protects “other persons.”  Other persons can be employers, creditors, relatives, friends, and neighbors affected by a debt collector’s violation of the FDCPA.

The National Consumer Law Center’s Fair Debt Collection manual cites an excellent example as follows:

“If a collector calls a consumer’s friend, asking him or her to talk to the consumer about a debt, both the consumer and the friend have standing to sue under the provision of the Act prohibiting third-party contacts.  On the other hand, if the collector calls the friend late at night, the consumer and friend have standing to sue under the provision of the Act prohibiting third-party contacts, but the friend does not benefit from the protection against late night phone calls because that provision only applies to communication with a consumer.  In an egregious case, however, the friend might successfully claim harassment or abuse under the general provisions of 15 U.S.C. Section 1692d or unfair means of collection under 15 U.S.C. Section 1692f.  In either example, if the debt collector had treated the friend as allegedly obligated, the friend would come squarely within the definition of “consumer.”"

National Consumer Law Center, Fair Debt Collection, p 109 (5th ed. 2004).

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.