UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
Division of Credit Practices
Bureau of Consumer Protection
|
|
November 17, 1995
Jeffrey R. Bergstrom Esq.
Bendelow and Darling, P.C.
The Chancery
1120 Lincoln St., Suite 1000
Denver, CO 80203
Dear Mr. Bergstrom:
This is in reply to your letter of August 30, 1995, concerning
a service which your client, Interactive Information Services
(IIS), proposes to sell to debt collection agencies. I apologize
for any inconvenience caused by our delay in replying. The facts
are as stated in your letter and I incorporate it by reference
in this reply.
In order for a service provided by your client to violate the
Fair Debt Collection Practices Act (Act), your client must be
covered by the Act, ie., it must be a "debt collector"
under Section 803(6). That Section defines a "debt collector"
as someone who ". . . regularly collects or attempts to collect,
directly or indirectly, debts owed or due or asserted
to be owed or due another." (Emphasis added.) As part of
IIS's service to debt collection agencies, it proposes to send
a letter to alleged debtors. The purpose of the letter is two-fold:
first, to promote a pre-paid long distance calling card offer
by IIS and, second, to obtain alleged debtors' telephone numbers
so that they can be contacted by the collection agencies in connection
with the collection of debts allegedly owed by them to third parties.
To the extent that the letter serves a collection function (albeit
an indirect collection function), which we believe it does, it
brings IIS within the coverage of the FDCPA.
Since IIS is covered by the Act, its collection communications
must also comply with the Act. Among other things, this means
that the letter referred to above must contain the following disclosures:
- a) The letter must disclose that IIS is attempting to collect
a debt and any information obtained will be used for that purpose,
in accordance with Section 807(1l);
-
- b) The letter (or a written communication sent within 5 days)
must contain the information required by Section 809(a), including
a statement of the consumer's right to dispute the debt under
Section 809(b).
Without these disclosures, we think the letter would violate
these sections. In addition, if the name "Nationwide Message
Delivery Service" is not the true name of IIS's business,
the letter would also violate Section 807(14), which requires
that only the debt collector's "true" name be used.
Please note that this is only the opinion of Commission staff;
as such, it does not bind the Commission itself. If you have further
questions, please do not hesitate to contact me.
Sincerely,
John F. LeFevre
|