|
UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C.
20580
|
Division
of Credit Practices
Bureau of Consumer Protection
|
|
September 16, 1993
Stuart K. Pratt
Director, State Government Relations
Associated Credit Bureaus
1090 Vermont Ave., N.W.
Suite 200
Washington, D.C. 20005-4905
Dear Mr. Pratt:
This is in reply to your letter of August 16, 1993 concerning
whether a debt collector is covered by the Fair Debt Collection
Practices Act when it purchases defaulted accounts from the original
creditor.
We consider the purchase of a defaulted account “. . . an
assignment or transfer of a debt in default solely for the purpose
of facilitating collection of such debt for another." See
Section 803(4) of the Act. As such, we do not believe that such
a purchase removes the debt collector from Act coverage with respect
to that account because it does not make the debt collector a
creditor under Section 803(4).
I hope this has been helpful.
Sincerely,
John F. LeFevre
|
