When a business or an individual is trying to collect on a past-due account, they must follow the Fair Debt Collection Practices Act (FDCPA). The FDCPA provides guidelines for debt collection activity. Some of these guidelines include the time of day a telephone call can be made and the language used in the written notice. Some of the types of accounts a collection agency, an attorney or a third party will try to recover include medical bills, credit card accounts, auto loan or a mortgage. Although all of these types of accounts are covered under the FDCPA there is some collection activity that is not covered. Below is a list of those accounts:
The original creditor
When a creditor is trying to collect payment on their outstanding accounts, they are not subject to the FDCPA. A debt collect is defined as a business trying to recover funds for another business or individual. When a creditor is trying to collect payment on their own accounts they do not have to follow the FDCPA. If the in-house collections department is a government agency or an independent contractor, than they would be subject to the FDCPA.
who work in collections and recovering past-due accounts are not subject to the FDCPA. Some of these types of accounts include student loans and Internal Revenue Service (IRS) accounts. However, if the government hires an outside agency to work on their accounts, that agency must follow the FDCPA.
A property manager is usually employed by the property owner making them an employee of the original creditor. They are not subject to the FDCPA and can try to actively work the account and contact the debtor freely.
Business to business accounts are not subject to the FDCPA. Businesses and third party agencies do not have to follow the same laws when trying to collect business to business accounts as they do for consumer accounts.
Consumer credit counseling services
Does not have to follow the FDCPA if they are a nonprofit organization receiving payment from the debtor for the creditor.
An individual who is trying to serve a court order enforcing payment on a debt to another individual is not subject to the FDCPA.
Even though these types of accounts are not subject to the FDCPA, they may have other collection laws they must follow and may restrict their efforts of trying to recover on the account. Any business or organization that works on trying to collect past due accounts should be familiar with the FDCPA as well as any state and federal collection laws to avoid any fines or other penalties.