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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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September 16, 1993
Mr. J.R. Zepkin, Lecturer
P.O. Box 452
Williamsburg, VA 23187-0452
Dear Mr. Zepkin:
This is in reply to your letter of August 16, 1993 concerning
whether a debt collector is covered by the Fair Debt Collection
Practices Act while collecting the debt collector's own debts
(as a creditor) in its own name.
The answer to your question is both yes and no. The debt collector
is still covered by the Act with respect to debts it collects
for others; however, the creditor exemption immunizes the debt
collector from the Act's applicability with respect to its own
debts which it collects in its own name. Thus, an attorney-debt
collector does not have to furnish a validation notice when sending
a demand letter concerning debts that originated with the attorney.
The Commentary's comment on Section 811 refers to situations
where the debt collector has been assigned an account by a creditor
solely for the purpose of collecting it (or suing upon it) in
its own name, but whatever recovery is obtained is ultimately
returned to the creditor. See the exception in Section 803(4),
"Definition of Creditor."
I hope this has been helpful.
Sincerely,
John F. LeFevre
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