A debt collector may attempt to collect a fee or charge in addition to the debt if either (a) the charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or (b) the contract is silent but the charge is otherwise expressly permitted by state law. Thus, the section applies to contacts with the consumer related to the collection of the debt, whether or not the debt is specifically mentioned. The words "or indirectly" in the definition make it clear debt collection lawyers lawfirms and collection agencies in puerto rico america that Congress intended a common sense approach to this situation. That notice also briefly described the FDCPA, the Commissions role in enforcing the statute, and the FTC staffs interest in improving the present method of providing advice by making informal staff letters available to the public. For the sake of completeness, all significant staff opinions included in this correspondence (which has been widely circulated already) have been included in the Commentary.

When a debt collector contacts a consumer and clearly discloses that he is seeking payment of a debt, he need not state that all information will be used to collect a debt, since that should be apparent to the consumer. May i will now be petitioning for a turtleneck is there anybody who will refinance a 2002 auto sweater day in the office. Consumer consent to the debt collection lawyers lawfirms and collection agencies in puerto rico america third party contact. Generally, the FTC staff found the public comments helpful in preparing the final version of the Commentary, although not all the proposals were adopted.

However, consent may not be inferred only from a consumer's debt collection lawyers lawfirms and collection agencies in puerto rico america inaction when the debt collector requests such consent. Prohibited actions are not limited to the sixitsubsections listed as examples of activities that violate this provision. This section prohibits the practice of selling to creditors dunning letters that falsely imply that a debt collector is participating in collection of the debt, when in fact only the creditor is collecting.

A debt collector may not state that a third party will take any action unless he has reason to believe, at the time the statement is made, that such action will be taken. A debt collector may not put on his envelope any business name with "debt" or "collector" in it, or any other name that indicates he is in the debt collection business. A creditor violates this section if he uses the name of a collection bureau as a conduit debt collection lawyers lawfirms and collection agencies in puerto rico america for a collection process that the creditor controls in collecting his own accounts. It also applies when a creditor assigns a debt originally owed to him, but retains the authority to collect the obligation on behalf of the assignee to whom the debt becomes owed. The courts have awarded "actual damages" for FDCPA violations that were not just out-of-pocket expenses, but included damages for personal humiliation, embarrassment, mental anguish, or emotional distress.

For example, the exemption applies to a creditor who makes a mortgage or school loan and continues to handle the account after assigning it to a third party. Can you get more free cash from credit card companies. Section 814 provides that the principal [53 Fed. One public commenter expressed concern that this formulation might open the door to overreaching by debt collectors. A debt collector may not refer to the consumer's debt in any third party communication seeking location information, including those with other creditors. A debt collector may not engage in repeated personal contacts with a consumer with such frequency as to harass him.

Since a debt collector may sue only where the consumer (1) lives or (2) signed the contract, the collector may not join an ex-husband as a defendant to a suit against the ex-wife in the district of her residence, unless he also lives there or signed the contract there. Detailed law firm profiles have information like the firm's area of law, office location, office hours, and payment options. Section 807(11) requires the debt collector to "disclose clearly in all communications made to collect a debt or to obtain information about a consumer, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose," except where section 804 provides otherwise. The Commission welcomes input from interested industry, consumer, and other public parties on the Commentary and on issues discussed in it.

A commercial letter of credit is a contractual agreement between a bank, known. A bona fide contest entry form, which provides a clearly optional location to enter employment information, enclosed with request for payment, is not deceptive. Section 805(d) -- "consumer" definition. Staff Commentary on the Fair Debt Collection Practices Act. Because of the broad statutory definition of "consumer" for the purposes of this section, many of its protections extend to parties close to the consumer. Section 807(2) prohibits falsely representing either "(A) the character, amount, or legal status of any debt collection lawyers lawfirms and collection agencies in puerto rico america debt; or (B) any services rendered or compensation which may be lawfully received by" the collector.

Public commenters argued forcefully that comment #3, stating that a debt collector could not communicate with a consumer who stated that an attorney would represent him with respect to all future debts, would place an unreasonable burden on the debt collector. A debt collector that publishes a list of consumers who have had bad debts, coded to avoid generally disclosing the consumer's identity (e.g., showing only the drivers license number and first three letters of each consumer's name) does not violate this provision, because such publication is permitted under the Fair Credit Reporting Act. For purposes of this section, "amount" includes not only the debt, but also any incidental charges, such as collection [53 Fed. The redraft adopted these suggestions where it appeared that they resulted in an appreciable improvement. If the debt collector does not have such information, a call on Sunday is not per se illegal.

Workers compensation cases can often pit the get workers comp help interests of a sick or injured worker. The Commission staff is issuing its Commentary on the Fair Debt Collection Practices Act that will supersede all previously issued staff interpretations of the Act. However, the public commenters provided no new analysis to change the staff's reading of the section. An appropriate clause has been added to the description and to comment #1, to give a more complete discussion of this section debt collection lawyers lawfirms and collection agencies in puerto rico america than in the proposed Commentary, which focused only on documents that fraudulently appear to be government documents. The exemption (ii) for a party that originated the debt applies to the original creditor collecting his own debts in his own name. Has the lawyer worked on other cases similar to yours.

However, it is usually permissible to send a letter generated by a machine, such as a computer or other printing device. A debt collector may not deceive a consumer into failing to respond to legal process by concealing the import of the papers, thereby subjecting the consumer to a default judgment. City - Is the lawyer's office conveniently located. A debt collector who conceals his purpose in asking consumers to call long distance may also violate section 807(11), which requires the debt collector to disclose his purpose in some communications. In some cases, reflection on the issues posed or relevant court decisions have resulted in a different interpretation from that expressed by the staff in those informal letters. A debt collector may not claim an amount more than actually owed, or falsely assert that the debt has matured or that it is immediately due and payable, when it is not.

It explained that the staff viewed the publication of the Commentary as an opportunity to provide a more comprehensive vehicle for providing staff opinions concerning the FDCPA, and to revise previous advice that the staff had come to believe was inconsistent or inaccurate. One public commenter pointed out that if the person from whom the location information is sought replies by expressly requesting the name of the employer of the individual debt collector who sent the letter,(1) sections 804(1) and 804(5) may appear to place conflicting obligations on the debt collection firm. When the collector uses multiple names in its various affairs, it does not violate this subsection if it consistently uses the same name when dealing with a particular consumer. A debt collector does not violate this section by using an envelope printed with words or notations that do not suggest the purpose of the communication. Attorney profiles include the biography, education and training, and client debt collection lawyers lawfirms and collection agencies in puerto rico america recommendations of an attorney to help you decide who to hire. Application of definition to creditor using another name.

The staff's position, reflected in the Commission's Sixth and Seventh Annual Reports to Congress--that such disclosures need not be made where they are obvious or have already been made--has not changed, and the comments provide no new argument for revising that view. Section 805(a) -- Communication with the consumer. A party does not violate this provision unless he knows or should have known that his form letter will be used to mislead consumers into believing that someone other than the creditor is involved in collecting the debt. A debt collector may not use the American Collectors debt collection lawyers lawfirms and collection agencies in puerto rico america Association logo on an envelope. Effect of including proof with first notice.

For example, the debt collector may not call the consumer's spouse at a time or place known to be inconvenient to the spouse. This results from the effort by Congress in drafting the FDCPA to be both explicit and comprehensive, in order to limit the opportunities for debt collectors to evade the underlying legislative intention. Cost - How are the lawyer's fees structured - hourly or flat fee. A debt collector may not send a collection letter from a "Pre-Legal Department," where no legal department exists. Therefore, the staff has added comments in appropriate locations to reflect the advice it has provided to attorneys on these issues. A debt collector may violate this section by an implied threat of violence.

For example, on some issues judicial interpretations of the statute vary depending on the jurisdiction, with the result that the staff's enforcement position can not be in accord with all decided cases. Comment #3 to this section has been expanded to assert that use of the term "Personal" or "Confidential," as well as [53 Fed. Updates of the Commentary will consider and, where appropriate, incorporate issues raised in correspondence and other public contacts, as well as the Commission's enforcement efforts. Self employed borrowers face two main self employed home loans obstacles in getting mortgages. For purposes of this section, the term "communicate" is given its commonly accepted meaning. Oct clean out foreclosures must have tips for foreclosure clean out business.

Section 811 provides that a debt collector may sue a consumer only in the judicial district where the consumer resides or signed the contract sued upon, except that an action to enforce a security interest in real property which secures the obligation must be brought where the property is located. A debt collector must verify a disputed debt even if he has included proof of the debt with the first communication, because the section is intended to assist the consumer when a debt collector inadvertently contacts the [53 Fed. For example, a collector may communicate via an actual telegram or similar service that uses a Western Union (or other provider) logo and the word "telegram" debt collection lawyers lawfirms and collection agencies in puerto rico america (or similar word) on the envelope, or a letter with the word "Personal" or "Confidential" on the envelope. If a judgment is obtained in a forum that satisfies the requirements of this section, it may be enforced in another jurisdiction, because the consumer previously has had the opportunity to defend the original action in a convenient forum. The FTC staff continues to believe that some contacts with consumers can violate section 805(a) or section 805(c) because they at least "indirectly" refer to the debt, even if the obligation isn't specifically mentioned.

A debt collector may not send written communications that deceptively resemble legal process forms. He may not sue where services were performed (if that is different from the consumer's residence), because that is not included as permissible forum location by this provision. A debt collector may not send a copy of the judgment to an employer, except as part of a formal service of papers to achieve a garnishment or other remedy.

A debt collector may use a name that does not misrepresent his identity or deceive the consumer. The abbreviated description of each section or subsection in the Commentary is designed only as a preamble to discussion of issues pertaining to each section and is not intended as a substitute for the statutory text. If a debt collector falsely uses the name of an attorney rather than his true business name, he violates section 807(3) as well as this section.

Unless the consumer has consented or a court order permits, a debt collector may not communicate with a consumer to collect a debt (1) at any time or place which is unusual or known to be inconvenient to the consumer (8AM-9PM is presumed to be convenient), (2) where he knows the consumer is represented by an attorney with respect to the debt, unless the attorney fails to respond to the communication in a reasonable time period, or (3) at work if he knows the consumer's employer prohibits such contacts. The deleted phrase was not necessary to the point involved--that consent need not necessarily be in writing--which is better made by providing a clear example of such consent. The Commentary should be used in conjunction with the statute.

Section 809(b) requires that, if the consumer disputes the debt or requests identification of the original creditor in writing, the collector must cease collection efforts until he verifies the debt and mails a response. Where services were provided pursuant to an oral agreement, the debt collector may sue only where the consumer resides. The consumer's consent need not be in writing. The FTC staff believes a proper interpretation of the FDCPA is to read section 804(1) as controlling this situation, because it specifically addresses the situation in which an individual expressly requests the name of the debt collection firm. The staff will continue to respond to requests for informal interpretations.

For example, there is no doubt that a debt collector who has previously contacted a consumer about a debt violates section 805(a) if he calls the consumer at 3 AM and says only "Hi, this is Joe, I haven't forgotten you"--the words may not refer to the debt, but the consumer will know from previous collection efforts by "Joe" what the call is about. This provision applies to lawsuits brought by a debt collector, including an attorney debt collector, when the debt collector is acting on his own behalf or on behalf of his client. Section 809(c) states that a consumer's failure to dispute the validity of a debt under this section may not be interpreted by a court as an admission of liability. A debt collector may not communicate by a format or envelope that misrepresents the nature, purpose, or urgency of the message.

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Credit and Finance
Russ Wermers
University of Maryland
The FTC staff continues to believe its reasons for revising prior staff opinions (discussed in item 5 of the notice in the Federal Register dated March 7, 1986) are well-founded, and thus it has adhered to that position.
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Therefore, a party who is interested in raising an issue for inclusion in future editions of the Commentary does not need to make any formal submission or request to that effect. The exemption (i) for bona fide fiduciary obligations or escrow arrangements applies to entities such as trust departments of banks, and escrow companies. There were several areas in which public commenters suggested changes in the Commentary that were not adopted. The comments bearing on this issue have therefore been changed to reflect that position. If a creditor uses a false business name, he both loses his exemption from the FDCPAs definition of "debt collector" (section 803(6)) and violates this provision. They argued that the comment would, in effect, repeal some of the subsections of section 808 because the proscribed conduct would not cause the type of injury required, or would not be considered unfair based on a cost/benefit analysis.

These commenters contend that the only way a debt collector could comply with our proposed interpretation would be to check every new debtor file against the closed files to determine whether (1) the collector had ever previously contacted that debtor, (2) the debtor had previously been represented by an attorney, and (3) the debtor had given the collector a blanket notice of legal representation.

He may not send a form or a dunning letter that, taken as a whole, appears to simulate legal process. Whether a debt collector/consumer reporting agencys use of his own "credit bureau" or other name indicates that he is in the collection business, and thus violates the section, is a factual issue to be determined in each individual case. The statement in comment #1 that consumers consent to third party contacts "may be presumed from circumstances" has been deleted. A creditor who is covered by the FDCPA because he uses a "name other than his own" also may violate section 807(14), which prohibits using a false business name.

One public commenter noted that this section of the proposed Commentary did not completely reflect the FDCPAs reference to sections of the Fair Credit Reporting Act.

Section 807(5) refers not only to a false threat of legal action, but also a false threat by a debt collector that he will report a debt to a credit bureau, assess a collection fee, or undertake any other action if the debt is not paid. A debt collector need not cease normal collection activities within the consumers 30-day period to give notice of a dispute until he receives a notice from the consumer. Because the section permits a debt collector to communicate with "the attorney of the creditor, or the attorney of the debt collector," communications between these parties (even if the attorney is also a debt collector) are not forbidden. Debt collectors statement of his own definite action. The Commentary attempts to discuss the more common overlapping references, usually under the heading "Relation to other sections," and deals with issues raised by each factual situation under the section or subsection that the staff deems most directly applicable to it.

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Section 816 provides that the FDCPA pre-empts state laws only to the extent that those laws are inconsistent with any provision of the FDCPA, and then only to the extent of the inconsistency. Numerous public commenters objected to comment #1 to this section, indicating a fear that the staffs interpretation would lead to a flood of waiver provisions hidden in the fine print of consumer credit contracts. Most of the public comments were aimed at clarifying the staffs intent. If state law forbids a debt collector from suing in his own name (or from doing so without first obtaining a formal assignment and that has not been done), the debt collector may not represent that he will sue in that state.

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A party may act in reliance on a formal advisory opinion of the Commission pursuant to 16 CFR 1.1-1.4, without risk of civil liability. For example, reference to an attorney or to legal proceedings may mislead the debtor as to the likelihood or imminence of legal action. Can the lawyer estimate the cost of your case. An attorney who represents either a creditor or debt collector that has previously tried to collect an account may communicate his efforts to collect the account to the debt collector.

A debt collector may establish an "agreement" without a written contract. Section 803(6)(F) provides that "debt collector" does not include collection activity by a party about a debt that "(i) is incidental to a bona fide fiduciary obligation or.

The existence of community property at her residence that is available to pay his debts does not alter the forum limitations on individual consumers. A debt collector may not use a transparent envelope, which reveals language or symbols indicating his debt collection business, because it is the equivalent of putting information on an envelope. This protection does not extend to reliance on this Commentary or other informal staff interpretations.