Personal Finance 1st Edition by Jack R. Kapoor

Exercise 17

1.    What is the Fair Debt Collection Practices Act?

2.    What are the most frequent reasons for indebtedness?

3.      What are common danger signals of potential debt problems?

Step 1 of 3

1. The Fair Debt Collection Practices Act prohibits certain practices by agencies that collect debts for creditors. The Act does not apply to creditors that collect debts themselves. While the act does not erase the legitimate debts that consumers owe, it does regulate the ways in which debt collection agencies do business. The Federal Trade commission enforces the Fair Debt Collection Practices Act.