1. FDCPA – Facts, Fiction & Reality
Welcome!
FDCPA – Facts, Fiction & Reality

2. Legal Disclaimer
This information is not to be intended as legal advice and may not be used as legal advice. Legal advice must be tailored to the specific circumstances of each case. Every effort has been made to assure that this information is up-to-date as of the date of publication. It is not intended to be a full and exhaustive explanation of the law in any area, nor should it be used to replace the advice of your own legal counsel.

3. Introduction
Mark Giddings
Sherri L. Andrew

4. Agenda Welcome Overview of the FDCPA Third Party Communications
Communicating with Consumers
Deceptive Acts and Practices
Wrap Up & Close 1 2 3 4 5 6

5. Overview of the FDCPA Discussion points: The purpose of the FDCPA
The benefits of the FDCPA
Who must comply with the FDCPA
Whom the FDCPA protects

6. Fair Debt Collection Practices Act
The Fair Debt Collection Practices Act (FDCPA) became federal law in March 1978.
The FDCPA is part of the Consumer Credit Protection Act that also includes:
Truth in Lending Act
Equal Credit Opportunity Act
Fair Credit Reporting Act

7. Purpose & Benefits Protects consumers Benefits ethical collectors
Sets a professional standard
Fosters a fair and competitive environment

8. Who is a Consumer?
Consumers include any natural person who is obligated or allegedly obligated to pay any debt.

9. Who Must Comply? Third-Party Debt Collectors Debt Purchasers Attorneys
Creditors in limited circumstances

10. What is Debt?
Any obligation or alleged obligation of a consumer arising out of a transaction primarily for personal, family or household purposes

11. Summary of Overview of the FDCPA
We have discussed the following topics:
The purpose of the FDCPA
The benefits of the FDCPA
Who must comply with the FDCPA
Who the FDCPA protects
Congratulations! You have completed the Overview of the FDCPA lesson.
To continue this course, click on a lesson in the course outline.

12. Questions

13. Third Party Communications
Identify who is considered a third party for purposes of communication under the FDCPA
Identify what information you can and cannot seek when obtaining location information

14. Who May Be Contacted
Debt collectors can contact the following people when collecting a debt from a consumer:
Consumer and consumer’s attorney
Creditor and creditor’s attorney
Minor consumer’s parents
Consumer’s spouse (if permitted by state law)
Consumer reporting agency
Debt collector’s attorney

15. Contacting the Consumer’s Attorney
If an attorney represents the consumer in regards to a debt which the consumer is collecting, the collector may only communicate with the attorney.

16. Skiptracing: Obtaining Location Information
Identify yourself by name only
State that you are trying to locate the consumer
Request only home address, home phone number and place of employment
Contact a third party only once

17. Third Party Communication Restrictions
DO NOT:
Reveal the existence of a debt to any party
Use symbols or language in written communication
Use postcards

18. Employment Verification
You CAN:
Call the employer and request the company verify whether the consumer is currently employed by the company
You CANNOT:
Request the consumer’s work phone number, supervisor’s name, dates of employment, salary amount, dates of pay or any other information

19. Summary of Third Party Communications
We have discussed the following topics:
Third party definition for purposes of communication
Information you can and cannot seek when obtaining location information

20. Questions

21. Communicating with Consumers
Requirements for written and oral communications with consumers
How to handle to cease communication requests
How to respond to disputes

22. Communication Defined
Communication is conveying information directly or indirectly to any person through any medium regarding a debt.

23. Communication Restrictions
Communication is prohibited:
At a time that is known to be inconvenient to the consumer
Before 8:00 a.m. or after 9:00 p.m. local time at the consumer’s location
If the consumer is represented by an attorney
If it is known or reasonably understood that the consumer’s employer would prohibit it

24. Discussion Questions

25. Mini-Miranda Disclosure
“This is an attempt by a debt collector to collect a debt.
Any information obtained will be used for that purpose.”

26. Mini-Miranda Disclosure
Recite the mini-Miranda in the first written and first verbal communication with a consumer.
All communications with consumers must indicate the communication is from a debt collector.
Some state laws require the mini-Miranda in all communications with consumers.

27. Validation Notice Required disclosure provided to the consumer
Informs consumer of their right to request verification of the debt
Should be in writing
Is required each time a subsequent agency takes over an account

28. Validation Notice
Validation notice must include the following information:
Amount of the debt
Name of the creditor to whom the debt is owed
Statement that the consumer has thirty days to dispute debt or the debt is assumed valid
Statement that if the consumer disputes debt in writing within 30 days, debt collector will provide verification
Statement that the debt collector will provide the consumer name and address of original creditor if requested by the consumer in writing within 30 days

29. A Validation Notice Should Include:
“See Reverse Side for Important Information”
(If the Validation Notice is printed on the reverse side of the letter)
Mini-Miranda disclosure
(if it is the first time you are communicating with the consumer)

30. Overshadowing The validation notice should not:
Demand immediate payment
Be inconsistent so as to cause confusion
Be printed in a smaller or lighter colored font
Be buried in other text

31. Discussion Questions

32. Settlement Offers
A settlement offer allows the consumer to settle the debt for an amount less than the total owed.
SETTLEMENT OFFERS CANNOT:
Overshadow the validation period
Use deceptive language to present the offer

33. Web Sites
If a collection letter references the debt collector’s Web site, the Web site must comply with the FDCPA.
Applies whether the consumer visits the site or not
Web site must include federal and state-mandated disclosures

34. Leaving Messages
Majority of courts held message is a communication requiring mini-Miranda disclosure
Catch-22 in that message may be heard by third party
Collection agency must undertake risk management analysis to determine what, if any, message should be left for consumer

35. Discussion Questions

36. Cease Communications
The consumer has the right to request the collector cease communicating with her.
Must be in writing
Must be sent to the debt
collector and not the creditor

37. Cease Communications
The debt collector should not communicate further except to:
Advise that the collection efforts will be terminated
Notify the consumer the debt collector or creditor may invoke certain rights as allowed by law
Where applicable, notify the consumer of specific remedy the collector or creditor intends to take

38. Bankruptcy and Automatic Stay
Immediately, when a consumer files for bankruptcy, the automatic stay goes into effect.
The stay lasts until:
the consumer receives a discharge
or the court closes the case
or the case is dismissed

39. Disputes
A consumer can dispute a debt at any time during the collection process.
Dispute can be oral or written
If reporting the debt, debt must be reported as disputed
Written dispute during 30-day validation period triggers verification

40. Verification
The consumer has the right to request verification in writing within the 30-day validation period.
Collection activity must cease until verification is provided.
Verification must be mailed by the debt collector to the consumer.

41. Verification What is verification of a debt?
Debt collector confirms in writing the amount demanded is the amount owed.
Appropriate verification of a debt will depend on the basis for the dispute.

42. Verification What is verification of a debt?
Until verification is provided, the debt collector is prohibited from pursuing collection activity on that account.
Collectors must be knowledgeable about what constitutes proper verification.

43. Discussion Questions

44. Legal Action
You CAN:
Debt collectors can file suit during the validation period.
You CANNOT:
Debt collectors cannot contradict the right to request verification.

45. Venue for Legal Action Suit must be filed in one of two venues:
Judicial district in which the consumer signed the contract that is the basis for the debt or
Judicial district in which the consumer resides at the time suit is filed

46. Summary of Communicating with Consumers
We have discussed the following topics:
Requirements for written and oral communications with consumers
How to handle cease communication requests
How to respond to disputes

47. Questions

48. Deceptive Acts and Practices
Following this topic, you will:
Understand what conduct is considered harassment or abuse
Recognize what the FDCPA considers to be false or misleading representations
Identify what practices are considered unfair or unconscionable means to collect a debt

49. Harassment and Abuse
You may not engage in any harassing, oppressive or abusive conduct in connection with the collection of a debt.

50. Harassment or Abuse Examples of Harassment or Abuse:
Use or threat of violence
Use of obscene or profane language
Publicizing list of consumers refusing to pay debts

51. Harassment or Abuse Examples of Harassment or Abuse:
Advertising the sale of any debt to coerce payment
Causing a telephone to ring repeatedly with the intent to annoy the consumer
Placement of phone calls without meaningful disclosure of the caller’s identity

52. False and Misleading Representations
You may not use any false, deceptive or misleading representation or means in connection with the collection of any debt.

53. False or Misleading Representations
Examples of False or Misleading Representations:
False representation that the collector is affiliated with U.S. or any state
False representation of character, amount or legal status of the debt
False representation that the collector is or communication is from an attorney
False representation that non-payment of the debt will result in the consumer’s arrest

54. False or Misleading Representations
Examples of False or Misleading Representations:
Threat to take action that cannot legally be or is not intended to be taken
Communicating false credit information
Failure to include mini-Miranda in communications
Use of business name other than true business name
False representation that debt collector is a consumer reporting agency

55. Unfair Practices
You may not use unfair or unconscionable means to collect or attempt to collect any debt.

56. Unfair Practices Examples of Unfair Practices:
Collection of any amount not authorized by agreement creating the debt or permitted by law
Acceptance of check post-dated by more than 5 days without providing written notice of intent to deposit 3-10 business days before depositing
Depositing post-dated check prior to date on check

57. Unfair Practices Examples of Unfair Practices:
Causing consumer to incur charges for communications by concealing true purpose of communication
Communicating with a consumer regarding a debt via postcard
Using any language or symbol, other than debt collector’s address, on any envelope when communicating with consumer via mail

58. Summary of Deceptive Acts and Practices
We have discussed the following topics:
Conduct considered harassment or abuse
False or misleading representations
Practices considered unfair or unconscionable means to collect a debt

59. Questions

60. Thank You
We Appreciate
Your Time
Mark
Sherri