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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. John P. Fedele, President
Judgment Collection Services, Inc.
4001 Kennet Pike
Suite 134
Greenville, DE 19807
Dear Mr. Fedele:
Thank you for your recent letters concerning whether your company
is covered by the Fair Debt Collection Practices Act (FDCPA) (copy
enclosed). You state that your company takes assignments of existing
judgments from judgment creditors (debts in default) and collects
them through the execution process. You ask whether the FDCPA
applies to your activities. I apologize for the delay in replying.
In my opinion, the answer is yes. Although I do not know the
person at the Commission with whom you conversed, your company
clearly seems to be one "... the principal purpose of which
is the collection of ... debts" (Section 803(6)). In addition,
since JCS routinely takes assignment of debts in default for the
purpose of collection, we do not believe JCS qualifies as a "creditor"
under the Act. (Section 803(4)).
In this circumstance, JCS would be required to comply with the
notice requirements in the Act, as prescribed by Section 807(11)
and 809.
I hope this responds to your inquiry.
Sincerely,
John F. LeFevre
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