Know Your Rights – Better Understand Consumer Debt Laws

Fair Debt Collection Practices Act – Californians are protected under the Fair Debt Collection Practices Act, which regulates how collection agencies and law firms are able to collect debts owed. All provisions of this Act must be followed. For instance, the max interest rate that a collection agency is able to charge is 10%. There is a California wage protection, which covers 75% of wages.

• Two years max for oral agreements
• Four years max for written contract
• Four years max for promissory notes
• Four years max for open accounts (i.e. credit cards)

Rosenthal Federal Fair Debt Collections Act “RFDCPA” – As a consumer, you’re entitled to file a lawsuit against any debt collector who violates your rights under the State of California’s Rosenthal Federal Fair Debt Collections Practices Act 

The Federal Fair Debt Collections Practices Act “FDCPA” –  As a consumer, you’re entitled to file a lawsuit against any debt collector who violates your rights under the  Federal Fair Debt Collections Practices Act.  You have a right to sue a debt collector for violations of the FDCPA within one year from the date you believe the law was violated.

30-Day Validation Notice Requirements – Within five days after you’re first contacted, a debt collector must send you a written 30 day validation notice telling you several statements about the debt dispute.