Why the Difference - OC vs CA / FDCPA

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.

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.

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.

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.

Hi all

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

Bethany

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

[quote]???? 802. Congressional findings and declarations of purpose [15 USC 1692]

(a) There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.

(b) Existing laws and procedures for redressing these injuries are inadequate to protect consumers.

(c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.

(d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce.

(e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.[/quote]
Congress was addressing collection abuse by third-party debt collectors when it enacted the FDCPA. At the time, apparently, there was little evidence that creditors were causing the same sorts of abuses.

This makes some sense, since creditors risk losing customers if they abuse them. Consumers have leverage with creditors, but little or none with third-party debt collectors.

Quote:

thank you morning star!!!!!!

thanks morning star :)

Bethany

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

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

This site has a lot of great information.

I didn't know the OC didn't fall under the fdcpa. So I'm trying to find the Ga state law to get the OC to stop calling my house and my mothers house.
LockTight (ADT) off Pleasentdale Rd Suit B-202 Atlanta,Ga 30340 will proudly tell you that they are the OC and they do not fall under the FDCPA and will call you every single day!

I spoke with them and told them I will make a payment sometime around the end of the month but don't know when. I explain to them that I had lost me job and just got hired back on. (I was lucky) they said ok and that they would call back around the end of the month. I got there address and sent them a "Do not call" letter. Now I already made payment arrangements with them. They called back a couple days later upset about the letter and telling me they will call me everyday. I told them I will make a payment but I don't want them calling me. They seem to have forgot about the payment arrangement after they received the letter. When they call my house and I don't answer, they leave a message, then call my mothers house. I'm tryin to find the Statute for Ga, to get these people to stop calling.

Can anyone help?