Fair Debt Collection Practices Act (FDCPA) staff letter: Fortney
Sept. 13, 1996 · Section 803(6) [1692a(6)]; Section 803(6)(F)(iii) [1692a(6)(F)(iii)]
Topic: Definition of "debt collector"
Staff opinion letters are informal views of FTC staff, not binding Commission rulings, and some were later superseded by statutory amendments (including the 2006 FDCPA amendments) or later guidance.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
September 13, 1996
Anne P. Fortney, Esq.
Carlsmith, Ball, Wichman, Case and Ichiki
700 14th Street, N.W.
Washington, D.C. 20005-2122
Dear Ms. Fortney:
This is in reply to your letter of July 22, 1996, concerning whether the servicer of a "private label" credit card or the merchant at whose stores the credit card is accepted is a "debt collector" under the Fair Debt Collection Practices Act (FDCPA). I incorporate by reference the facts set forth in your letter in this reply.
My opinion remains unchanged from that given to you in our recent telephone conversation. Based on the information in your letter, I believe that:
1) the merchant is not a "debt collector" under the FDCPA because the merchant does not engage in the collection of debts for another and the principal purpose of its business is not debt collection as required by Section 803(6),
2) the servicer, while it engages in the collection of debts, does so only with respect to debts not in default at the time they were obtained. Thus, the servicer is exempt from coverage of the FDCPA by virtue of the language of Section 803(6)(F)(iii).
Please be advised that this is the opinion of the Commission staff and is not binding upon the Commission itself.
Sincerely,
John F. Lefevre Attorney
Source: FTC staff letter as archived by the U.S. National Archives web harvest, archived copy. Works of the U.S. government.