UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
September 10, 1996
Daniel R. Crouch
Lieutenant, JAGC, USNR
Legal Assistance Office
Box 10, Navel Submarine Base
Boston, Connecticut 06349-5010
Dear Mr. Crouch:
This is in reply to your letter of June 27, 1996 concerning whether
the "Credit Bureau of Connecticut," a private agency
that provides "collection support" to Trans Union, violates
Section 807(1) of the Fair Debt Collection Practices Act (FDCPA)
by using "Connecticut" in its name.
Use of the name of a state in the name of a private debt collector
has been held to violate Section 5 of the Federal Trade Commission
Act, e.g., "Washington Service Bureau" (Bennett
v. F.T.C., 200 F.2d 362 (D.C. Civ. 1952); "State Credit
Control Board (Slough v. F.T.C., 396 F.2d 870 (5th Cir.),
cert. denied 393 U.S. 980 (1968). Collectors have agreed
to add language to their dunning letters to cease deceptive implications
that they are related to or affiliated with a government entity
("Maryland Collection Service") Valderrama v. National
Revenue Corp., Clearinghouse No. 31,734 (D. Nob 1983) (consent
order).
Assuming, therefore, that the Credit Bureau of Connecticut is
a "debt collector" covered by the FDCPA , we believe
that, without exculpatory language in its letter, its use of the
word "Connecticut" in its name could mislead a consumer
into believing that the credit bureau is affiliated with the state
of Connecticut, in violation of Section 807(1) of the FDCPA.
I hope this is responsive to your inquiry. Please be advised
that this is the opinion of Commission staff and is not binding
on the Commission.
Sincerely,
John F. LeFevre
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