Olivia buys an all-terrain-vehicle (ATV) from Fun Times, Inc., on credit but mak

Question

Olivia buys an all-terrain-vehicle (ATV) from Fun Times, Inc., on credit but makes no payments on the account. Eric, the owner of Fun Times, calls Olivia at home on a Monday morning at three a.m. Eric represents himself as PayNow Collection Agency and demands payment “or else.” The next day, Eric sends Olivia notice that she has thirty days in which to request verification of the debt and that its payment will be suspended during that time, but that if he does not pay the full amount due within five business days, Eric will arrange for the “destruction of Olivia’s good credit rating.”

Which laws has Eric violated, if any, and in what ways? Explain thoroughly.

Explanation / Answer

Yes, Eric has violated the laws regarding debt collection. The federal law, Fair Debt Collection Practices Act (FDCPA) provides regulations for debt collectors when collecting the debts.

The FDCPA covers the collection of mortgages, credit cards, medical debts and other debts for personal or family use. According to the case study, the debt is regarding purchase for personal or family use. Hence, the case can be considered under the federal law in terms of the FDCPA act.

Restrictions-

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.