Fair Debt Collection Practices Act (FDCPA) staff letter: Shapiro
Oct. 1, 1997 · Section 803(6)(F)(iii) [1692a(6)(F)(iii)]
Topic: Debt not in default exemption
Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance.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
October 1, 1997
Mr. Daniel P. Shapiro
Goldberg, Kohn, Bell, Black,
Suite 3700
55 E. Monroe Street
Chicago, IL 60603-5802
Rosenbloom & Moritz, LTD.
Dear Mr. Shapiro:
I have your cover letter of August 1 1,1997, to your request of the same date for an informal staff opinion concerning the status of your client, DM Services, Inc. a a the Fair Debt Collection Practices Act ("Act"). Your request describes a set of circumstances in which DM Services collects debts that are obtained while they are still current, on behalf of and in the name of a creditor, in a context that you believe would exempt DM Services from FDCPA coverage under Sections 803(6)(A) and 0;) (iii) of the Act. You ask whether we agree. In providing this opinion, I incorporate by reference your letter of August 11 and the facts outlined therein.
Based on these facts, Commission staff agrees with your conclusion that the de fact0 employee exemption outlined in the staff commentary would apply to DM's activities, even when DM employees do not work on the premises of the creditor-catalogue company. This is premised on the extensive degree of control that you state the catalogue company will maintain over the collection activities of DM and the fact that they will be collecting in the catalogue company's name and not the name of DM.
We also agree that, to the extent that DM's collection activities concern debts not in default when obtained, they would be exempt from the Act under Section 803(6) (F) (iii). Please be advised that this is merely the opinion of Commission staff and is not binding upon the Commission itself.
Attorney
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.