FDCPA Covered Entities and Exemptions

Question 1

Under the FDCPA, a 'debt collector' is defined as a person who regularly collects debts owed to whom?

Accepted Answer

Another party — not debts owed to themselves

Answer

A debt collector is defined as someone who regularly collects debts owed to another — original creditors collecting their own debts are generally excluded.

Question 2

Is a creditor collecting its own debt in its own name covered by the FDCPA?

Accepted Answer

Generally no, unless using a different name that suggests a third party is collecting

Answer

Original creditors collecting under their own name are excluded, but if they use a different name suggesting third-party collection, they may be covered.

Question 3

Which of the following is generally EXEMPT from the FDCPA?

Accepted Answer

A federal government employee collecting a debt in the course of official duties

Answer

Federal and state government employees collecting debts in their official capacity are expressly exempt from the FDCPA.

Question 4

A company purchases charged-off consumer debts and collects them for its own account. Is it a 'debt collector' under the FDCPA?

Accepted Answer

Yes, debt buyers are debt collectors under the FDCPA

Answer

The Supreme Court (Henson v. Santander) addressed this issue, and most courts and the CFPB treat debt buyers as debt collectors under the FDCPA.

Question 5

Which type of debt is covered by the FDCPA?

Accepted Answer

Consumer debts incurred primarily for personal, family, or household purposes

Answer

The FDCPA applies only to consumer debts — those arising from transactions primarily for personal, family, or household purposes.

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA Covered Entities and Exemptions