UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
Division of Credit Practices
Bureau of Consumer Protection
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March 3, 1992
Mr. John D. Krisor, Jr.
Krisor and Nusabaum
P.O. Box 6200
South Bend, Indiana 46660-6200
Dear Mr. Krisor:
This is in response to your letter of October 9, 1991 wherein
you pose two questions:
- (1) If a debt collector ceases collection activity, must the
debt collector send documentation of the indebtedness to the
debtor?
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- (2) Can a debt collector charge for copies of the documentation
of the indebtedness?
1. Section 809(b) of the Act provides that if the consumer disputes
the debt or requests identification of the original creditor in
writing, the collector must cease collection efforts until he
verifies the debt, or identifies the original creditor and mails
a response to the consumer. If the consumer's request for verification
of the debt was made in accordance with Section 809(b) of the
Act, the collector need not supply the documentation but only
so long as collection efforts are not resumed. Section 809(b)
requires that "the collector cease collection of the debt,
or any disputed portion thereof, until the debt collector obtains
verification of the debt . . . and a copy of such verification
. . . is mailed to the consumer by the debt collector." In
situations contemplated by Section 809(b), the Act imposes the
obligation to furnish verification before the collector resumes
collection efforts. In the event the collector decides not to
pursue the collection efforts, there is no requirement to furnish
the documentation of the indebtedness to the consumer. In the
event that collection efforts are resumed, the requirement to
furnish verification to the consumer prior to resumption of collection
remains.
2. A collector may not charge (the consumer) for copies of the
documentation of the indebtedness mailed in response to the collector's
obligations under Section 809(b). To do so could constitute an
imposition of a fee or service charge in violation of Section
808(l) of the Act.(1)
The cost of obtaining documentation referred to in your letter
is more appropriately a cost of doing business by the collector
in the same manner as is postage and telephone charges.
I hope this information will be helpful. The views expressed
herein represent an informal staff opinion. As such they are not
binding on the Commission. They do, however, reflect the staff's
current enforcement position.
Sincerely,
Roger J. Fitzpatrick
Attorney
Division of Credit Practices
1. Section 808 of the Act sets out
practices that are unfair or unconscionable, including:
(1) the collection of any amount (including any
interest, fee, charge, or expense incidental to the principal
obligation) unless such amount is expressly authorized by the
agreement creating the debt or permitted by law.
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