FDCPA applies to whom?

• A. Third-party debt collectors (not original creditors)
• B. Original creditors only
• C. All lenders regardless of role
• D. Credit reporting agencies only

Answer: (A)

FDCPA is aimed at protecting consumers from abusive practices by entities that collect debts on behalf of others. It applies when a debt is being collected by a third party, not by the original creditor trying to collect its own loan. So a collection agency hired by a bank, or a law firm hired to pursue a defaulted account, is covered by the FDCPA. It does not cover original creditors collecting their own debts in most cases, and it does not regulate credit reporting agencies (that falls under the Fair Credit Reporting Act). It also isn’t a blanket rule for all lenders—the controlling idea is who is acting as the debt collector for someone else.