Types of Debt
There are many different types of debts people can have.
However, the Fair Debt Collection Practices Act does not apply to
all of them. Debts incurred by a business are not covered
under the FDCPA. Also, non-transactional debts, such as
fines, traffic tickets, or other municipal fees, are not
covered. The law only covers "consumer debts." A
consumer debt, under the FDCPA is generally one that is personal in
nature, and pertains to a transaction entered into between an
individual and a merchant. The FDCPA states that it is a debt
that is incurred "primarily for personal, family, or household
purposes." 15 U.S.C. §1692a(5).
Debt collectors that are collecting on non-consumer debt do not
have to comply with the FDCPA, and therefore, seemingly unlawful
conduct goes without consequences.
Common Types of Consumer Debt
There are many different types of consumer debts. The most
common debts collected upon by debt collectors are
credit card debts,
medical debts, and
student loan debts. There are others, such as personal
loans, cell phone bills, utility bills, bank overdraft charges,
auto loans, payday loans to name some more.
Read about the most common types of debts and what to expect if
you have a debt of this nature that you are unable to pay.