Which law is added to the Consumer Credit Protection Act and makes abusive collection practices illegal?

Which law is added to the Consumer Credit Protection Act and makes abusive collection practices illegal?

• A. Equal Credit Opportunity Act
• B. Credit Repair Organizations Act
• C. Fair Debt Collection Practices
• D. Consumer Financial Protection Bureau

Answer: (C)

The Fair Debt Collection Practices Act (FDCPA) is the legislation that was added to the Consumer Credit Protection Act to address and prohibit abusive collection practices. This law establishes guidelines for the behavior of debt collectors, ensuring they engage in fair practices when collecting debts from consumers. It specifically prohibits tactics such as harassment, false statements, and other deceptive practices that can negatively impact consumers. Understanding this act's purpose is crucial, as it plays a significant role in protecting consumers' rights and ensuring that they are treated fairly in the collection process. The FDCPA applies only to third-party debt collectors and does not regulate the original creditor, which highlights its focused intent on addressing abuse in debt collection specifically. This distinction is important for consumers to know their rights and the proper conduct expected from those collecting debts on behalf of others.

The Fair Debt Collection Practices Act (FDCPA) is the legislation that was added to the Consumer Credit Protection Act to address and prohibit abusive collection practices. This law establishes guidelines for the behavior of debt collectors, ensuring they engage in fair practices when collecting debts from consumers. It specifically prohibits tactics such as harassment, false statements, and other deceptive practices that can negatively impact consumers.

Understanding this act's purpose is crucial, as it plays a significant role in protecting consumers' rights and ensuring that they are treated fairly in the collection process. The FDCPA applies only to third-party debt collectors and does not regulate the original creditor, which highlights its focused intent on addressing abuse in debt collection specifically. This distinction is important for consumers to know their rights and the proper conduct expected from those collecting debts on behalf of others.