Question

Which of the following is a legal collection practice included in the Fair Debt Collection Practices Act?

A) Calling the debtor at any time of the day or night
B) Making false statements about the debt
C) Publicly disclosing the debt to other parties
D) Offering to settle the debt with a discount

Answer 1

The Fair Debt Collection Practices Act allows for the legal collection practice of offering to settle the debt with a discount, while prohibiting calls at any time, false statements, and public disclosure.

Step-by-step explanation:

The Fair Debt Collection Practices Act (FDCPA) is a law that governs the practices of debt collectors in the United States. According to the FDCPA, debt collectors are prohibited from engaging in abusive, deceptive, or unfair collection practices. Among the specific rules, debt collectors are not allowed to call the debtor at any time of the day or night, nor are they permitted to make false statements about the debt or to disclose the debt publicly to other parties. However, offering to settle the debt with a discount is a legal collection practice permitted under the FDCPA. Such offers can sometimes be part of negotiating a resolution to a debt that is satisfactory to both the debtor and the creditor.