The Fair Debt Buying Practices Act of the State of California took effect on January 1, 2014. The law applies to any consumer debt sold or re-sold on or after January 1. While this law is concentrated on California, other states may come up with similar laws in the future.
Essentially, the Act protects the consumers in several ways and several provisions must be remembered by debt buyers or debt collection agencies when they try to collect. First, the law restricts the written statements that debt collection agencies (or debt buyers) can send to consumers. It also prevents a debt collection agency from writing a consumer unless the collector has an evidence or copy of the debt agreement or any document that can serve as evidence that the consumer entered into a contract with the creditor. One evidence is the most recent monthly statement that shows the purchase or transaction leading to the unpaid debt.
The Act also protects consumers by giving them the right to make a written request for information regarding the debt from the debt collector. The debt collector should provide the information within 15 days or stop calling the consumer until such time it can submit the information. When a debt collector files a case against the consumer, the complaint must be clear and a copy of supporting documents, such as the debt contract must be submitted as evidence.
