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UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
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Division of Credit Practices
Bureau of Consumer Protection
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May 16, 1994
David G. Challed
Utah Legal Services, Inc.
124 S. Fourth East
Fourth Floor
Salt Lake City, Utah 84111
Dear Mr. Challed:
This is in reply to your letter of April 20, 1994 concerning
the propriety of the business name "Lawyers Collection Services"
for a debt collection agency that has no lawyers on its staff.
You ask whether use of the business name violates Section 807(3)
of the Fair Debt Collection Practices Act.
We believe that the above-mentioned name may convey two possible
impressions about the nature of the debt collector's business,
both of which may be erroneous: 1) that the debt collector collects
only for lawyers as clients and/or 2) that the debt collector
is comprised of lawyers whose skills will be utilized
in making collection attempts. According to your letter, the latter
is clearly untrue; the former may or may not be untrue.
As such, we believe that the business name could have the tendency
and capacity to deceive consumers into believing that dunning
letters sent under such a letterhead are "from an attorney"
when such is not the case, in violation of Section 807(3). Such
letters could also violate Section 807(10) to the extent that
they misrepresent the make-up of the debt collection agency or
the character of its clients.
I hope this has been helpful.
Sincerely,
John F. LeFevre
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