Fair Credit Reporting Act (FCRA): Federal law that regulates the collection of consumers' credit information and access to their credit reports. Must be considered for credit reporting implications of debt forgiveness.
Fair Debt Collection Practices Act (FDCPA): Federal law that limits the behavior and actions of debt collectors who are attempting to collect debts on behalf of creditors. Ensures debt forgiveness communication complies with collection practices.
Internal Revenue Code Section 6050P: Federal tax regulation requiring creditors to report canceled debt of $600 or more to the IRS using Form 1099-C, as canceled debt is generally considered taxable income.
Truth in Lending Act (TILA): Federal law requiring transparent disclosure of credit terms and costs to borrowers. Relevant for ensuring clear communication of debt forgiveness terms.
State Debt Collection Regulations: Varying state-specific laws governing debt collection practices and procedures that may affect the debt forgiveness process.
State Consumer Protection Laws: State-specific laws designed to protect consumers from unfair practices in credit and debt matters, including debt forgiveness arrangements.
State Statute of Limitations: State-specific time limits for legally collecting a debt, which may impact the timing and validity of debt forgiveness agreements.
CFPB Guidelines: Consumer Financial Protection Bureau regulations governing consumer financial products and services, including debt collection and forgiveness practices.
FTC Regulations: Federal Trade Commission rules protecting consumers from deceptive or unfair practices in debt collection and debt relief services.
IRS Form 1099-C Requirements: IRS documentation requirements for reporting canceled debt, which must be filed by creditors when forgiving qualifying debt amounts.
