Legislator Looks to Expand the FDCPA to Include Government Debt

Did you know that debt collectors who are attempting to collect a government debt, such as parking tickets, are exempt from the FDCPA. That means these debt collectors have carte blanche to lie, cheat, overcharge, deceive, and make false threats without the threat of the consumer being able to sue under the FDCPA.

Thanks to Senators Corey Booker and Mike Lee – a new legislation called Stop Debt Collection Abuse of 2015 has been proposed to close this loophole. Some of the other areas the law covers include:

  • Confirms debt buyers are also debt collectors under the FDCPA;
  • Prevents debt collectors from charging consumers exorbitant fees; and
  • Prevents debt collectors from taking drastic measures against a consumer who only recently went into default.

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