FTC Informal Staff Opinion: Fedele (08-30-96)

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David A. Szwak
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Joined: Thu Jul 13, 2006 11:19 pm

FTC Informal Staff Opinion: Fedele (08-30-96)

Post by David A. Szwak »

http://www.ftc.gov/os/statutes/fdcpa/letters/fedele.htm

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
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak
509 Market Street, 7th Floor
Mid South Tower
Shreveport, Louisiana 71101
318-221-6444
Fax 318-221-6555
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