FTC Wants to Tighten Fair Debt Collection Act
The Federal Trade Commission has recommended Congress tighten and clarify the Fair Debt Collection Practices Act.
Specifically, the FTC said the law should require letters from debt collectors to consumers about the payment of outstanding debts to be written in plain, understandable language with large, readable type.
It also recommended Congress clarify the law by adding a provision that permits “appropriate collection activity within 30 days,” as long as the consumer has not filed a formal, written challenge to the debt.
In addition, the FTC wants to tighten the definition of debt collector to distinguish between “an attorney who pursues alleged debtors solely through litigation as opposed to one who collects debts through the sending of dunning letters or making [telephone] calls directly to the consumer.”
And, the agency recommended tightening existing exemptions from the law that apply to real estate mortgage service firms. The commission said these firms act more like a creditor than a debt collector who, by definition, collects “delinquent accounts.”
There was no immediate comment from the Direct Marketing Association and the Associated Credit Bureaus, the credit industry’s trade association. Both groups indicated they are studying the FTC’s recommendations to determine the effect on their respective members.
Meantime, Senate and House subcommittees are reviewing the FTC’s recommendations for possible legislative action later this year.
First Data Becomes Donnelley Marketing Again First Data Corp., Chicago, will change the name of its marketing services organization back to Donnelley Marketing. The unit’s previous name, First Data Solutions, was selected when First Data acquired Donnelley Marketing in 1996.
“Since the acquisition of First Data we have continued to broaden our capabilities, expanding the scope of our information and developing valuable database management tools and systems for our clients,” said Peter Shaper, president, Donnelley Marketing, in a statement. “Using the Donnelley marketing name again will enhance our recognition in the marketplace.”
