What is the FDCPA, and who does it apply to?

FDCPA stands for Fair Debt Collection Practices Act, codified at 15 U.S.C. 1692. It defines a debt collector two ways: a business whose principal purpose is the collection of debts, or one that regularly collects debts owed or due another. Collection agencies and collection law firms fall squarely under the second prong. Debt buyers are more fact-specific: in Henson v. Santander (2017) the Supreme Court held that collecting debt you own is not collecting debt owed to another, so a debt buyer's coverage usually turns on the principal-purpose prong, and most companies whose business is buying and collecting defaulted portfolios treat themselves as covered. Original creditors collecting their own accounts in their own name generally fall outside the federal statute, though several states extend similar conduct rules to them.

For operators the statute is the compliance floor: identify yourself honestly, avoid contact at unusual times or places, honor cease and attorney-representation requests, send the validation notice within five days of the first communication, and never misrepresent the debt or the consequences of nonpayment. Regulation F translated those duties into system settings, including the seven-call presumption and limited-content voicemails. Licensing is a separate obligation on top; most states require a collection agency license, registration, or bond regardless of how compliant the conduct is, and state examiners routinely ask for the FDCPA policy set during licensing.