FDCP Act enhances relationship between agencies and customers

Consumer spending has been consistently on the rise in recent months, which means debt collection agencies are likely to be busy.

"Now that people have paid down their debts over the last several years,and banks are now in much stronger positions to make loans, we are seeing credit availability improve and consumers are more willing to access that credit availability," Russell Price, senior economist at Ameriprise Financial, recently told Bloomberg News.

According to statistics by the Federal Reserve, consumer borrowing jumped $16 billion between October and November, reaching a record $2.77 trillion. Non-revolving debt, the sector that includes automotive and student loans, grew the most, at $15.2 billion.

With analysts predicting that these consumer trends will continue in 2013, debt collectors figure to be busy for at least the next 12 months. As a result, the Fair Debt Collections Practice Act (PDCP Act) will likely be put to the test in the coming months.

In essence, the act defines the relationship between consumers and debt collection agencies. According to a recent Orlando Sentinel blog, debt entails any obligated consumer payment resulting from a monetary, insurance, property or services transaction.