Fair Debt Collection Practices Act (FDCPA) staff letter: Chesworth
Sept. 16, 1997 · Section 803(5) [1692a(5)]; Section 807(9) [1692e(9)]
Topic: Definition of "debt"
Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance. Check current law before relying on any letter.
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580
Bureau of Consumer Protection
September 16, 1997
Donald O. Chesworth, Esq.
Harris, Chesworth & O'Brien
1820 East Avenue
Rochester, New York 14610
Dear Mr. Chesworth:
This is in reply to your recent letter concerning the debt collection activities of your client, Law Enforcement Systems, Inc. Your client collects unpaid parking fines for various governmental units. You ask whether the enclosed Fair Debt Collection Practices Act applies to these collection activities.
Commission staff does not consider fines to be "debts" under Section 803(5) of the FDCPA, because they do not originate from a transaction involving the purchase of property or services for personal, family or household purposes. Therefore, to the extent that your client is engaged in activities collecting unpaid parking fines, we do not believe that these activities are covered by the FDCPA.
You also ask whether the name "Law Enforcement Systems, Inc." violates either the FDCPA or Section 5 of the Federal Trade Commission Act (FTCA). Based on the information supplied in your letter, we do not believe that your client's use of the name "Law Enforcement Systems, Inc." violates either of these statutes.
Please be advised that this is merely the opinion of Commission staff and, as such, is not binding on the Commission itself.
Sincerely,
John F. LeFevre Attorney
Enclosure
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.