Types of Debt

Although there are many different types of debt that a consumer can have, the Fair Debt Collection Practices Act (FDCPA) is not applicable to them all. The FDCPA only covers consumer debts and does not cover any debt that is acquired by a business and in addition, it does not cover non-transactional debts (traffic tickets, fines, municipal fees). If a debt collector is pursuing a non-consumer debt, they do not have to follow the rules of FDCPA and because of this, there can be some inappropriate conduct that may not have a consequence.

Consumer debt is categorized as debt that is personal and is a transaction that occurred between the consumer and a merchant. The FDCPA says this is a debt that is acquired “primarily for personal, family, or household purposes.” 15 U.S.C. §1692a(5).

There are different types of consumer debt, with the most common being:

• Auto loans
• Bank overdraft charges
• Cell phone bills
• Credit card debt
• Medical debt
• Payday loans
• Personal loans
• Student loan debt
• Utility bills

If you are looking to dispute a debt, contact The Consumer Advocacy Center at 312-782-5808 and find out how we can help you.