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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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August 30, 1996
Mr. David C. Farmer
Lynch and Farmer
Suite 2500 Mauka Tower
Grosvenor Center
737 Bishop Street
Honolulu, Hawaii 96813
Dear Mr. Farmer:
This is in reply to your recent letter concerning a situation
where a loan, originally made by a mortgage servicing company
is assigned to another party, but the servicer continues to service
the loan on behalf of the assignee. You ask whether the servicing
company is covered by the Fair Debt Collection Practices Act (FDCPA)
(copy enclosed) when the loan goes into default and the company
sends a dunning letter to the borrower.
Section 803(6)(F)(ii) of the FDCPA exempts from the definition
of debtor persons attempting to collect debts and others to the
extent that the collection activity "...(ii) concerns a debt
which was originated by such person." It appears that this
is the situation you describe. If so, the servicing company appears
to be exempt from coverage of the Act.
I hope this is responsive to your inquiry.
Sincerely,
John F. LeFevre
Enclosure
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