The Beginning of New Debt Collection Practices

The introduction of RFDCPA has changed the course of debt collection practices. The law in one way directs the collection agencies to perform fair debt collection practices and in another way assist the debtors to have a trouble free life. The state of California has two authorities which control the collection agency laws. They are the Fair Debt Collection Practices Act or most commonly FDCPA and Rosenthal Fair Debt Collection Practices Act or popularly known as RFDCPA. State decrees are controlled by the RFDCPA while the federal decree is controlled by the FDCPA. Both the laws are aimed to direct the collection agencies to perform the fair practices and bring equality in their practice methods with honesty.

The California debt collection law orders the collection agencies not to hide their purpose of collection and their identity or the identity of the company which has hired them to perform the task of debt collection when they make their first call to the debtors. In the other hand they should not misrepresent or scandalize their identity while contacting with the debtors. The law clearly states that they must not represent themselves as an attorney or an official of state law. The RFDCPA strictly follows the rulebook and applies its regulations with discipline.

The law also provides some measures to safeguard the debtors from the unwanted debt harassment. Guarding the interest and dignity of the consumer is one of the primary aims of the state authority. The law offers the debtors the freedom the stop communication with collection agency’s agents with a written notice. This must be done within 30 days after issuing the notification for debt collection.

The debtor can further demand for verification certificates from the collection agencies about the procedure. This is mainly to see the transparency of the collection practices. In this way they can check the amount which is claimed. The law also guides the collection agency to work as a third party or behalf of the creditor.

The reason behind the implementation of such law is the unethical practice of the debt collection agencies. The rise of the debt harassment and the increased number of cases filed against it are the factors which made the state authorities determined to regulate some laws which will provide some respite to the debtors. This measure has so far helped the debtors to fight debt harassment and the unjustified behavior of the collection agencies.

RFDCPA is the outcome of this situation. The law itself is one step ahead than the federal law. The state law holds the reputation of guiding the agencies in the right direction and also to help the debtors to restore their reputation with dignity.

By: Smith Jhonson

The author,Smith Jhonson,contributes articles on behalf of consumer law firm centre. In this article he has discussed the value of RFDCPA to have fair debt collection practices.

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Submitted On Jun 29, 2012. Viewed 673 times.

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