Debt Collection Problems

Debt Collection Laws

Types of Debt

There are many different types of debts people can have.  However, the Fair Debt Collection Practices Act does not apply to all of them.  Debts incurred by a business are not covered under the FDCPA.  Also, non-transactional debts, such as fines, traffic tickets, or other municipal fees, are not covered.  The law only covers "consumer debts."  A consumer debt, under the FDCPA is generally one that is personal in nature, and pertains to a transaction entered into between an individual and a merchant.  The FDCPA states that it is a debt that is incurred "primarily for personal, family, or household purposes."  15 U.S.C. §1692a(5). 

Debt collectors that are collecting on non-consumer debt do not have to comply with the FDCPA, and therefore, seemingly unlawful conduct goes without consequences. 

Common Types of Consumer Debt

There are many different types of consumer debts.  The most common debts collected upon by debt collectors are credit card debts, medical debts, and student loan debts.  There are others, such as personal loans, cell phone bills, utility bills, bank overdraft charges, auto loans, payday loans to name some more. 

Read about the most common types of debts and what to expect if you have a debt of this nature that you are unable to pay.