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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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December 13, 1996
John E. Beekman, Esq.
Springhouse Place
156 Pikeland Road
Malvern, PA 19355
Dear Mr. Beekman:
This replies to your letter of November 11, 1996, concerning
the extent to which a debt collector must disclose, while collecting
debts in its own name, its corporate connection with the creditor.
The case you pose involves a debt collector that is a subsidiary
of the parent company of the creditor.
While I am not aware of any cases on this point (although they
may exist), my recommendation, to avoid any perceived misrepresentation,
is for the debt collector to make the disclosure proposed in your
letter, i.e., that the debt collector is a subsidiary of
the parent company of the creditor. This would meet the objectives
of Section 812 as well as alleviate any concerns that the collector,
by using its own name in collecting debts, is "holding itself
out" as a third party wholly independent of the creditor.
I hope this responds to your inquiry.
Sincerely,
John F. LeFevre
Attorney
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