Fair Debt Collection Practices Act (FDCPA) staff letter: Farmer
Aug. 30, 1996 · Section 803(6)(F)(ii) [1692a(6)(F)(ii)]
Topic: Originated debt 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Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance.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
Division of Credit Practices Bureau of Consumer Protection
August 30, 1996
Mr. David C. Farmer
Lynch and Farmer
Suite 2500 Mauka Tower
Grosvenor Center
737 Bishop Street
Honolulu, Hawaii 96813
Dear Mr. Farmer:
This is in reply to your recent letter concerning a situation where a loan, originally made by a mortgage servicing company is assigned to another party, but the servicer continues to service the loan on behalf of the assignee. You ask whether the servicing company is covered by the Fair Debt Collection Practices Act (FDCPA) (copy enclosed) when the loan goes into default and the company sends a dunning letter to the borrower.
Section 803(6)(F)(ii) of the FDCPA exempts from the definition of debtor persons attempting to collect debts and others to the extent that the collection activity "...(ii) concerns a debt which was originated by such person." It appears that this is the situation you describe. If so, the servicing company appears to be exempt from coverage of the Act.
I hope this is responsive to your inquiry.
Sincerely,
John F. LeFevre
Enclosure
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.