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Posted: Fri Oct 19, 2007 9:46 pm

Maybe someone can explain to me why the FDCPA only applies to 3rd party collectors? I guess I don't see why there is a distinction between them and the "in-house" collectors at the original creditor. I, as well as some other posters on this forum, have had experiences with the original creditor that are as bad, or worse, than some CA's.
I live in Florida, and from what I can figure, there are really no state laws that govern the original creditor when it comes to collection practices. I think harassment is harassment, whether it is at the hands of CA's or the original creditor. The FDCPA, in my opinion, should govern both.
Still, this has been an interesting dialogue, and I thank Sam for opening it.

Posted: Sat Oct 20, 2007 5:51 am

To Ron, the text of the FDCPA defines what a debt collector is. By definition, the original creditor is specifically excluded (unless the OC is using a different/fake name to collect their own debt). So therein lies the distinction -- as long as an 'in-house' collector is calling you under guise of the OC's real name, they are not bound by FDCPA.

Your state probably does have laws somehwere that govern the OC, but you may not be looking in the right place. For example, in Illinois I would have to look under "Sales Finance Agency Act" to find state collection laws that govern a credit card company collecting its own debt.

Posted: Sat Oct 20, 2007 6:14 am

Ron here's what I have found:

Florida has a Statute 559.72 which is very similar to the FDCPA. However, if you look at the wording, it says "In collecting consumer debts, no person shall...". This is different from the FDPCA in that the FDCPA states "No Debt Collector Shall..." (and then we refer to the definition of a Debt Collector...).

I believe even the original creditor would fall under the definition of a person, and therefore have to follow those FL laws.

Posted: Sat Oct 20, 2007 11:43 am

DebtCruncher. Thanks for the information. After I posted my question, I did do a Google search and found the same statute you posted; it is titled "Florida's Consumer Collections Practices Act." And is worded, to me at least, pretty much the same as the FDCPA. There is even a provision that states if there is a conflict between the FDCPA and the FCCPA, then whichever of the two more strongly protects the consumer prevails.
Good information to know.
And my questions wasn't what the FDCPA defines as a collector, I pretty much understand that. My question was why does the FDCPA specifically exclude the original creditor? Why leave it up to the states to take care of? Why not make the FDCPA all encompassing for CA's as well as OC's. Why make something illegal for a CA, that and OC can get away with?
I have had, and I'm sure others have too, some very bad experiences dealing with an OC's collection department. I had one OC fill up my voice-mail at my job, and wouldn't stop calling there when I told them to. Of course, if I had been a little better educated back then, and know about the FCCPA, I would have sued them.

Posted: Sat Oct 20, 2007 3:15 pm

Sorry, I misinterpreted your question a little bit, and thought you were wondering literally why the FDCPA doesn't apply to OC's. Now we're getting a little more philosophical as to why the FDCPA was created in that context...

I can imagine that when FDPCA was enacted, there was a public outcry regarding collection agencies, and Congress just wanted to "fix" enough to shut people up without opening another can of worms. To include the original creditor in it's definition would also include almost every single business/company in the U.S. who isn't paid cash at the time of sale. It would affect commerce on a mass scale because there is potential for abuse.... I can picture someone's landlord demanding them to pay the rent, but if FDPCA included the OC's that would mean landlord is bound, and tenant would have a right to demand validation before landlord could further try to collect the rent.

I don't think Congress wanted to put such tight restrictions on the entire sector, lest your monthly statements from any company would have to say "This is an attempt to collect a debt and any informatin obtained will be used for that purpose." Delinquent accounts really only make up a small percentage of the whole, and I think Congress just wanted to make sure that CAs who deal with this small percentage mind their P's and Q's.

As a final comment I think that if the verbiage in the FDCPA included the OC, then it would have been short-lived in Congress, probably would have died on the floor and never passed into law. That's why they left it up to the states to deal with a creditors' own business practices.

Posted: Sun Oct 21, 2007 11:38 pm

Hi all

I have a query regarding the difference between FDCPA and FCRA violations?

Bethany

Posted: Mon Oct 22, 2007 7:15 am

As to why, look to the beginning of the FDCPA:

Posted: Tue Oct 23, 2007 12:03 am

Posted: Wed Oct 24, 2007 12:34 am

thank you morning star!!!!!!

Posted: Wed Oct 24, 2007 12:49 am

thanks morning star Smile

Bethany

Posted: Wed Oct 24, 2007 4:05 am

Thanks to both DebtCruncher and SamGlover for your responses to my question. You both gave me the information I was looking for.

Posted: Thu Oct 25, 2007 9:02 am

THANKS ALL OF YOU FOR THE FANTASTIC INFORMATION HERE.
THANKS!!!

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