Debts Covered by the FDCPA
The FDCPA covers personal, family, and household debts being collected by a third-party debt collector. This includes: credit card debt in collections, medical bills sent to a collection agency, auto loan deficiencies with a debt buyer, old utility bills with a collector, personal loans assigned to collections, and debts purchased by debt buyers.
Debts NOT Covered
Original creditors collecting their own debts are not subject to the FDCPA (some states have separate laws). Business debts are excluded -- the FDCPA only covers consumer debts. Federal student loans collected by the Department of Education are government actions, not subject to the FDCPA. Tax debts collected by the IRS or state tax agencies are government collections. Court-ordered obligations like child support and alimony are also excluded.
Gray Areas
Private student loans in collections ARE covered by the FDCPA. Medical debts being collected by a hospital's internal collection department may not be covered (they are the original creditor), but once sold to an outside agency, they are. Mortgage servicers have a complex relationship with the FDCPA -- some courts treat them as debt collectors, others do not.
State Laws May Expand Your Rights
Many states have their own debt collection laws that are broader than the FDCPA. For example, some states restrict original creditors, cover business debts, or provide higher statutory damages. Check your state attorney general's website for consumer protection resources specific to your state.
Frequently Asked Questions
Can I send a cease and desist for medical bills?
Yes, if the medical bill has been sent to a third-party collection agency. If the hospital or doctor's office is still collecting directly, the FDCPA does not apply, but some state laws may still protect you.
What about student loan debt?
Private student loans in collections are covered by the FDCPA. Federal student loans collected by the Department of Education or its contractors have separate rules under the Higher Education Act, and a cease and desist will not stop them.
Can I stop a debt buyer from contacting me?
Yes. Debt buyers who purchase debts and collect on them are considered debt collectors under the FDCPA. A cease and desist letter is fully effective against debt buyers.
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