Model Fair Debt Buying Practices Act
10 Pages Posted: 2 Mar 2014 Last revised: 17 Mar 2015
Date Written: February 28, 2014
The Model Fair Debt Buying Practices Act would regulate the activities of a person or entity that has purchased charged-off debt. It would establish clear procedures, minimum documentation requirements, and affirmative obligations before a debt buyer can: (1) contact a debtor, (2) initiate a lawsuit, and (3) obtain and collect on a judgment. The Act will help to curb some of the worst abuses in the debt buying industry, ensure that consumers are not forced to pay debts they do not owe, and reduce frivolous lawsuits in state courts.
Keywords: debt collection, debt buyers, frivolous lawsuits, consumer protection, CFPB, Fair Debt Collection Practices Act
JEL Classification: D18, H63
Suggested Citation: Suggested Citation