FTC Informal Staff Opinion: Evans (08-12-93)

[David A. Szwak]

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

UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

Division of Credit Practices
Bureau of Consumer Protection


August 12, 1993

Mr. Larry L. Evans
President
Evans Receivables Management, Inc.
1107 West Avenue, Suite D
Confers, GA 30207

Dear Mr. Evans:

This is in reply to your letter of June 23, 1993 concerning whether the collection of filing fees for cases filed by the state for non-payment of child support is covered by the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq.

The answer to your question turns on whether filing fees can be considered "debts" under Section 803(5) of the Act, 15 U.S.C. § 1692a(5), which defines a "debt" as:

any obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family or household purposes . . ..

The purpose of a filing fee in this circumstance is presumably to reimburse the county for costs associated with filing a case. Such a purpose does not appear to be consistent with the requirement that there be a "transaction" and that the subject of the transaction (filing fees) be related to personal, family or household concerns. Here, there was no "transaction" as such and filing fees, standing alone, are not related to personal, family or household concerns. This is so even though the underlying reason for the filing fees (child support) could be so related. It is our understanding that you are not proposing to collect child support directly but only the filing fees associated with child support cases.

Thus, we do not believe that the collection of filing fees falls within the parameters of the Act.

I hope this has been helpful.

Sincerely,

John F. LeFevre