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FDCPA- WHICH "DEBT COLLECTORS" ARE EXCLUDED
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Posted by Why Chat (209.240.222.130) on April 01, 2002 at 20:26:42:
I AM POSTING THE COMPLETE EXPLANATION OF WHEN AND WHY CREDITORS ARE NOT COVERED UNDER FDCPA Perhaps the most overlooked exception to coverage under the Act are creditor's employees collecting debts directly owed their employer, i.e., creditor's collecting on their own accounts. In addition to the definitional limitation placed on those who collect "debts owed or due or asserted to be owed or due another," the FDCPA specifically exempts:
Any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor.
The Act further exempts:
Any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts. Although these exclusions are directed toward creditors' in-house collectors and their affiliates, these exemptions are not absolute. Creditors lose their exemption if they use a false name that indicates a separate debt collector is involved, or those that do not clearly indicate that the creditor is, in fact, collecting the debt. Thus, a defendant must carefully examine the nature of the communications to the consumer to ensure that a viable argument could not be presented that a "least sophisticated consumer" would be lead to believe that the person collecting is not truly employed by or affiliated with the creditor.
Though the "creditor" exemption of the FDCPA will extend to those debts which were not originated by the creditor, one must ensure that such debt was not obtained while such loan was in default. Debts acquired after default are statutorily included within the coverage of the FDCPA.9
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