UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
Division
of Credit Practices
Bureau of Consumer Protection
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August 27, 1992
James R. Palmer
Garfinkel & Palmer
Tower Place at the Summit
1900 Summit Tower Boulevard
Suite 760
Orlando, Florida 32810
Dear Mr. Palmer:
This is in response to your request for a staff opinion concerning
the Fair Debt Collection Practices Act ("FDCPA" or "Act").
I apologize for the delay in responding. As I told you on the
telephone today, I was not certain from your two letters whether
you sought a written reply if Commission staff agreed with your
analysis of the Commission Staff Commentary on the FDCPA ("Commentary").
Because I now know that you would like such a written response,
I am sending this informal staff opinion.
You ask whether your retailer clients or your law firm would
be covered by the FDCPA if they "make[] a claim for civil
damages against an alleged shoplifting offender." Retailers,
to the extent that they are creditors, are not covered by the
FDCPA. Under certain circumstances, however, your law firm would
be covered by the Act. The central issue is whether your retailer
clients' claims for civil damages are "debts" for purposes
of the FDCPA.
The FDCPA defines "debt" as any obligation or alleged
obligation of a consumer to pay money arising out of a transaction
in which the money, property, insurance, or services which are
the subject of the transaction are primarily for personal, family,
or household purposes, whether or not such obligation has been
reduced to judgment.
The Commentary states that the definition of "debt"
does not include tort claims "because they are not debts
incurred from a [transaction] (involving purchase of) property
... or services ... for personal, family or household purposes."
(The Commentary contains a typographical error, using the word
"transportation" where the word "transaction"
was intended.)
When I spoke with you today, you stated that all of the civil
claims brought by your retailer clients against alleged shoplifters
are tort claims. These claims are not "debts" as the
term is defined in the FDCPA. Thus, when your law firm attempts
to enforce the claims, it is not attempting to collect "debts,"
and its collection activities with respect to these claims are
not covered by the FDCPA.
The views expressed herein represent an informal staff opinion.
As such, they are not binding on the Commission. They do, however,
reflect the staff's current enforcement position.
Sincerely,
Thomas E. Kane
Attorney
Division of Credit Practices
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