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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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September 17, 1996
Paul H. Green
CEO
Cross Check, Inc.
6119 State Farm Drive
Rohnert Park, CA 94928-2146
Dear Mr. Green:
Thank you for your letters to David Medine of June 27 and July
30, 1996, concerning the check guarantee industry and its coverage
by the Fair Debt Collection Practices Act (FDCPA) . David has
asked me to respond to them; I apologize for the delay.
I enclose for your information copies of two amicus briefs filed
by the Commission in the Seventh and Ninth Circuits which address
some of the issues raised in your letters. They represent the
current position of the Commission concerning whether the check
guarantee industry is covered by the FDCPA. In addition, it is
our belief that, no matter how the activities are portrayed or
disguised, check guarantee companies are not "creditors"
under Section 803(4) because, in the last analysis, they still
routinely attempt to collect third party checks that have been
dishonored by the bank. The collection function is an integral
part of the business.
I hope that this respond to your inquiry.
Sincerely,
John F. LeFevre
Attorney
Enclosure
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