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Guest · Posted: Fri May 16, 2008 6:14 pm

Are they basically the same thing? if an attorney licensed to practice law in Massachusetts is, in fact, the "debt buyer" as contemplated by the Division’s Industry Letter of June 16, 2006 (the "Industry Letter"), the attorney or a law firm would be required to obtain a license as a debt collector in accordance with the requirement of the Industry Letter. Accordingly, the attorney-at-law exclusion would not be available to an attorney who or a law firm which is a debt buyer. It is the Division’s position that under those facts the debt buyer/attorney would neither be passive nor acting on behalf of a client.

So if an attorney in Massachusetts solely deals in debt collection, would you say they need to be licensed to collect debt as the above paragraph mentions? Furthermore, If all they do is sue for debt collectors, would you still say they need to be licensed?

Guest · Posted: Sat May 17, 2008 6:42 am

Where has everyone been?

Posted: Sat May 17, 2008 6:54 am

We're here, I just think we were all extremely confused by that "law speak" paragraph! Smile

Try posting this in another forum, dealing with law. I don't think anyone here would be able to figure all that mumbo-jumbo out, let alone tell you what it means.

Sorry! Maybe someone else can help...

Posted: Sat May 17, 2008 7:03 am

let me give this a try.yes,an attorney that just does collections still must be licensed and follow the FDCPA.some lawyers will still act like they don't have to.they still must validate debt if requested to do so.i have seen alot of threads that post that some CA's are claiming to be attorneys when in fact they are not.suppose an attorney were retained to recover a debt,more than likely they will provide all documentation to ensure proper resolution.if it is a supposed attorney that bought the debt for pennies on the dollar,then that's when you get some of the stories you seen here at times.
in short,yes an attorney must follow the FDCPA if they are collecting a debt.sorry for rambling,but i have seen alot of this on this forum with lawyer questions.

Guest · Posted: Sat May 17, 2008 7:18 am

That is what I thought Paul, thanks. Going to some of the attorneys websites all they do is debt collection and if it a basement lawyer, they still list they are a debt collector on their letters.

Posted: Sat May 17, 2008 7:24 am

happy to shed some light on the subject,been there,done that,as far as some CA's posing as lawyers.glad i could help. Very Happy

Posted: Sat May 17, 2008 2:25 pm

I've seen it published in an official source [can't remember where, but may well have been the FTC website] that FDCPA applies to attorneys if "they regularly collect debts." Try searching over at www.ftc.gov.

Posted: Sat May 17, 2008 5:34 pm

Might be a 'stupidity' question. But...IS there a difference between a Debt Buyer and Debt Collector? I of, i've heard of a Debt Collector, but, not a Debt Buyer.

Posted: Sat May 17, 2008 7:56 pm

[Junk] debt buyer = collection agency that buys old debt for pennies, then tries to coerce full payment. LVNV / Resurgent / Sherman, et al spring immediately to mind here.

Guest · Posted: Sat May 17, 2008 9:54 pm

Thank you Unclewulf, that is who I am dealing with now. LVNV funding is not licensed to collect debt in Massachusetts and neither is the attorney who is suing me for them. The attorney says on their website that their business is debt collection.

The funny thing is that Resurgent Capital Services is licensed to collect debt in my state but if you have a D/B/A you must have them listed or licensed. So I have a perfect defense as far as LVNV and the attorney go, lol.

Posted: Sun May 18, 2008 4:04 am

Maybe you've got something with the Resurgent/LVNV biz license, but you've got nothing on the attorney (at least, not based on what you've posted in this thread).

LVNV owns the debt.
The attorney is working for LVNV.
Therefore, the attorney is not acting as a debt buyer (it is unknown if the attorney/law firm purchases any debts).
If the attorney is not a debt buyer, then the exclusion applies--the attorney does not need to be licensed as a debt collector.
The attorney needs to follow FDCPA and state debt collection laws, however.

Guest · Posted: Sun May 18, 2008 6:25 am

Well the attorney files thousands of lawsuits every year against debtors. I doubt very much they are acting as an attorney because attorneys cost about $200/hr? If they are doing all this work on a $2,300 debt, how will anyone be making any money?

The attorney only buys the debt for pennies on the dollar if he is successful with a lawsuit. If they are not able to sue, they just give the file back to the JDB. The office has 5 attorneys and probably 40 or more debt collectors.

So how would they not have to be licensed?

Posted: Mon May 19, 2008 12:53 am

If you think about it, it really doesn't matter. If the lawyer owns the debt and is collecting it on its own behalf, they have to abide by all the laws (including licensing). However, if they are acting on behalf of another company, just bypass them and send the DV to the CA that hired the lawyer. You can include a copy of the letter to the laywer as well. JUst because they are a lawyer does not give them any more power over you, CAs just use them to try and scare you into paying. Heck, if the lawyer still tries to collect after you DVed the CA, you have the CA on violations because of the continued collection activity on their behalf! Especially if you also sent the same letter to the lawyer that you sent to the CA, but honestly, it is up to the CA to stop the lawyer once they get a DV demand.

Posted: Mon May 19, 2008 2:27 am

Oh...I get it. You provide new information in an attempt to elicit a new response when you didn't like the answer I provided.

Why don't you go to a law library and research the extent of the Attorney-at-Law exemption, or pay an attorney for a consult? On the other hand, if you are dead set in pursuing the matter, why not file suit against the attorney. If you lose, you'll only be out the filing fee and have a judgment recorded against you for the defense's attorney fees (pursuant to your MA state law).

Posted: Mon May 19, 2008 1:06 pm

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