Fair Debt Collection Practices Act (FDCPA) staff letter: Fedele
Aug. 30, 1996 · Section 803(4) [1692a(4)]
Topic: Definition of "creditor"
Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance.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
Division of Credit Practices Bureau of Consumer Protection
August 30, 1996
Mr. John P. Fedele, President
Judgment Collection Services, Inc.
4001 Kennet Pike
Suite 134
Greenville, DE 19807
Dear Mr. Fedele:
Thank you for your recent letters concerning whether your company is covered by the Fair Debt Collection Practices Act (FDCPA) (copy enclosed). You state that your company takes assignments of existing judgments from judgment creditors (debts in default) and collects them through the execution process. You ask whether the FDCPA applies to your activities. I apologize for the delay in replying.
In my opinion, the answer is yes. Although I do not know the person at the Commission with whom you conversed, your company clearly seems to be one "... the principal purpose of which is the collection of ... debts" (Section 803(6)). In addition, since JCS routinely takes assignment of debts in default for the purpose of collection, we do not believe JCS qualifies as a "creditor" under the Act. (Section 803(4)).
In this circumstance, JCS would be required to comply with the notice requirements in the Act, as prescribed by Section 807(11) and 809.
I hope this responds to your inquiry.
Sincerely,
John F. LeFevre
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.