Debt Collection Forms and Envelopes Which Simulate Government or Other Official Documents
77 F.T.C. 1702 · Apr. 13, 1970 · Digest No. 408
source volume section (77 F.T.C. 1702)
Text is machine-OCR of the printed volume and may contain errors. Advisory opinions are the Commission's views on proposed conduct, not binding orders.
No. 408. Debt Collection Forms and Envelopes Which Simulate Government or Other Official Documents.
The Commission advised sellers of skip tracer and debt collection forms that a proposal to use forms simulating Government. and other official documents would be regarded as violative of an outstanding cease-and-desist order and Commission administered statutes.
In rejecting the proposal to use certain envelopes and forms, the Commission pointed out that:
(1) The general appearance of the proposed forms, when considered with numerous references to “Washington,” “National,” “Federal,” Federal courts, and to the Federal Trade Commission, cause the forms , te simulate Government or official documents. (2) The forms do not disclose in a prominent place, in clear language and in type at least as large as the largest type (exclusive of captions) either that the sole purpose is to collect a debt, or that the U.S. Government is in no way connected with the request for payment.
AVVIDUNL ULFLINLUIN DLUBDLDO 1L4Uv (3) The forms do not disclose in a prominent place, and in clear language, the identity of the creditor to whom the debt is allegedly owed.
(4) The forms contain only a general statement of the rights of a creditor under state law to attach the real or personal property, income, wages, and other property of the debtor; the statement is misleading and inaccurate because, while it will be sold and used in many states, it does not set out the many variations in state laws, particularly the exemptions and restrictions. (5) The forms represent by implication that the Federal Trade Commission and a federal court of appeals have approved them. (6) The brown window envelope in which the forms are to be mailed simulate, by their general appearance and by reference to “Washington” and “Federal,” envelopes used by the Federal Government for official purposes. (7) Because of the similarity to envelopes used by the Federal Government and references to “Washington D.C.” and “Federal,” the envelope seems to come from a party other than the creditor. (File No. 718 7023, released April 13, 1970.)