The amount of consumer credit card debt in the typical U.S. home is $7,200 on average. With impending employment lay-offs and increasing medical bills, this consumer debt is quickly becoming impossible to pay off. If you are a consumer with debt it is vital that you learn about all the components in the Fair Debt Collection Practices Act.

This act is often disregarded by many debt collection agencies. In this act, each component outlines a strict guideline needed by the FDCPA and it this is violated then the debt collection may be void in its totality. There may also be avenues provided for the consumer to file a suit against the collection agency in question.

A fact not known to many consumers is that the FDCPA requires all written and verbal debt collection attempts should have an abbreviated Miranda Warning included. This is not the full statement used in the process of an arrest but a mini version is needed. This means that the debt collection agency has to, by federal law, introduce themselves by name, state that a call is coming from a debt collection agency and advise that the information the consumer states will be utilized in the debt collection process. Without these three major components in any written or oral communication the debt collection attempt at this instance is considered illegal.

Another factor that consumers should be aware off is any attempt to collect the debt owed at the debtor’s place of employment. This can be through verbal or written methods and can provide the debtor with the grounds for a suit against the collection agency. The consumer can avoid this type of collection attempt by specifically in writing requesting that the debt collection attempts made verbally and written be discontinued at their place of employment or if the debt collection firm has been advised by the employer or his representative that debt collection is banned at the worksite. In either of these situations the collection agency must cease their actions or face a suit in local, state or federal court.

It is also a well used tactic by debt collection firms to offer to accept a payment via check on the phone from the debtor. This while not illegal in its initial stages can be deceptive. It may seem appealing but in fact there are two main disadvantages. The first is legal but still a disadvantage to the debtor. When using a check by phone the collection firm is supplied with the banking information of the debtor and can then use this in litigation making the debtor provide the proof of all banking records from the account in question. The second disadvantage which is illegal is the manipulation employed by some agencies to deduct the payment allowed by the debtor on several regular intervals. The debtor is led to believe the payment will be deducted once but in fact it is deducted several times. The main point here is to avoid this process entirely and keep your banking information private. When payment arrangements are made offer to mail in a money order instead of supplying your banking data.

It is important to fully comprehend the rights of the consumer under the Fair Debt Collection Practices Act (FDCPA) and make sure that both the consumer and the debt collection agency are protected under the federal laws. If you need more information about debt management visit www.cccs.org.