The Fair Debt Collection Practices Act (FDCPA) prohibits abusive, deceptive, and unfair debt collection practices. In the foreclosure context, it primarily applies to third-party debt collectors — including foreclosure attorneys and trustee firms in some circuits. Prohibited conduct includes: harassment, false statements about the debt, threats of action the collector cannot legally take, contacting you at inconvenient times, and failing to validate the debt. Successful FDCPA claims yield: actual damages, up to $1,000 statutory damages, and attorney fees. At Dream Financial Management, we identify FDCPA violations to strengthen foreclosure defense nationwide since 1994.
The FDCPA generally does NOT apply to your mortgage servicer (unless the servicer acquired the debt after default). It DOES apply to: foreclosure law firms, collection agencies collecting deficiency balances, and third-party debt buyers. However, circuit courts disagree on whether foreclosure itself constitutes "debt collection" under the FDCPA. The law evolves — what wasn't covered yesterday may be covered tomorrow.
Misrepresenting the amount owed, threatening foreclosure when the collector lacks authority, falsely claiming you will be arrested, or misrepresenting the legal status of the debt. Common in foreclosure rescue scams and third-party collection of deficiencies.
Repeated phone calls with intent to annoy, use of obscene language, threatening violence, publishing your name as a debtor. Keep a call log — document date, time, caller, and content. Pattern evidence is powerful in FDCPA litigation.
Within 5 days of initial communication, the collector must send a written notice stating: the debt amount, the creditor name, and your right to dispute within 30 days. If you dispute in writing within 30 days, the collector must cease collection until verification is provided.
FDCPA violations provide an independent cause of action — you can recover damages AND use violations to strengthen foreclosure defense. Dream Financial Management evaluates collection practices for FDCPA claims. Since 1994. Free consultation.