|
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
|
Division of Credit Practices
Bureau of Consumer Protection
|
|
December 13, 1993
Mr. Gary L. Goff
3315 Roswell Road
Apt. B-9
Atlanta, Georgia 30305
Dear Mr. Goff:
This is in reply to your letter of November 28, 1993 concerning
whether a collection agency violates the Fair Debt Collection
Practices Act (copy enclosed) when it attempts to collect a debt
owed a utility (such as an electric company), not from the primary
obligor, but from a third party who lived with the primary obligor
during the time the utility services were provided.
The FDCPA regulates the practices of "debt collectors,"
as defined, when they attempt to collect debts from "consumers":
The term "consumer" means any natural person
obligated or allegedly obligated to pay any debt [Section 803(3)].
Clearly, the creditor (in this case, the utility company) has
alleged that the third party living with the primary obligor is
obligated to pay, if the primary obligor does not. Whether the
third party, in fact, owes the utility debt is a matter of state
law; if the creditor believes he does and communicates this belief
to the debt collector, then the debt collector may continue to
attempt to collect the debt, subject to any dispute or cease communication
notices that the third party submits to the collector. If the
creditor believes the debt is valid, the Act does not require
the debt collector to "go behind" a creditor to determine
whether the creditor's belief is, in fact, correct. On the other
hand, the third party has the same dispute and cease communication
rights under the Act as any other alleged debtor.
I hope this has been helpful.
Sincerely,
John F. LeFevre
Attorney Advisor for General Credit
|
