Worried About the Fair Debt Collection Practices Act?

Do you work for a financial institution that collects debts? If so, do you know whether the Fair Debt Collection Practices Act, 15 U.S.C. 1692 (the Act) (http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm) regulates what you do? Do you fear that your collection practices might subject you or your company to liability? Relax. The Act generally does not apply to commercial foreclosures or the collection of commercial debts. (See my 11-1-06 article Just What Is Commercial Foreclosure Law? for more background.)

Personal, Family or Household Purposes. The Act focuses on obligations arising from consumer transactions. Bass v. Stolper, et al., 111 F.3d 1322 (7th Cir. 1997). Debt, for purposes of the Act, is defined as an obligation to pay money arising out of a transaction that is primarily for personal, family, or household purposes 15 U.S.C. 1692a(5). A nice article in the American Law Reports Federal explains the concept in detail: What Constitutes Debt for Purposes of Fair Debt Collection? 159 A.L.R. FED. 121 (2000). Even individual guarantors of an obligation do not fall within the scope of the Act if the guaranty is part of a commercial transaction. See the Federal Trade Commissions website (http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm) for more discussion. My practice and blog are dedicated primarily to commercial deals, not consumer loans. If youre in the same boat, then essentially all you need to know about the Act is (1) its out there, (2) a violation of it is a bad thing, but (3) it generally doesnt apply to you.

Behave Appropriately. The legal industry has some very creative attorneys, as well as some judges inclined to protect debtors. There are gray areas in the law. Legal principles evolve, as can the interpretation of statutes like the Act. For instance, the ALR article cites a case from Mississippi in which a commercial debt essentially was transformed into a consumer debt covered by the Act when the debt collector made harsh, abusive, foul, obscene, indecent, uncouth, violent, threatening, intimidating, and harassing phone calls to the debtor. So dont be reckless. Be mindful of the spirit of the Act, which Congress designed to eliminate abusive, deceptive, and unfair debt collection practices.

As a general proposition, however, you need not sweat the details of the Act if youre confident that youre dealing with a commercial transaction. When in doubt, however, follow the Act. Or, contact your lawyer for advice. In the past few years, there has been plenty of litigation involving the application and enforcement of the Act, so recent case law exists to help you or your lawyer determine whether your actions may be regulated.

John D. Waller is a partner at the Indianapolis law firm of Wooden & McLaughlin LLP (http://www.woodmclaw.com). He publishes the blog Indiana Commercial Foreclosure Law at http://commercialforeclosureblog.typepad.com. Johns phone number is 317-639-6151, and his e-mail address is jwaller@woodmclaw.com.Ebook Harry Potter
Successful How To Make Money Online Now
Index Of Parent Directory Of Ebooks
Growing Profit Make Money With Adsense Xtsafelist
Fast Easy Free Ways To Make Money
Webmaster Hammes Advertising, Inc
Blogging Concerts
Internet Marketing Strategy Domain Name Registration
Advertising Specialty Company
Search Engine Optimization Fetan
Network Marketing Group
Ways To Make Fast Easy Quick Money Online
Business Marketing Mlm Money Network
Based Business Home Internet Legitimate Opportunit
Free Romance Ebooks
Free Online Bingo And You Get Money To Start You O
Affiliate Programs Australia
Pagerank
Earn Money In The Uk Online Now Free To Join
Search Engine Optimization Web Site Promotion
Fast Free Make Money
Free Webmaster Backgrounds
Jackets Domains And Internet Search Engine Pay Per Click
Free Bingo Cards Toplay For Real Money
Ohio Make Money Online
Directory Submission, High Page Rank
Runescape Free Money
Make Money At Home Aus Online Auction
Internet Marketing Seo Marketing Consulting
Links Top Seo Google Search Engine Optimization Ranking
Business Home Internet Marketing Mlm
Free Network Marketing Opportunity
Make Money Doing Nothing
International Search Engine Optimization
Home Based Business Affiliate Program Internet Marketing
Bush Wans Blogging Made Illeagle
Seo Internet Marketing Consulting Website Prom
Marketing Online Free Info Product Make Money Opportunity
Google Adsense Portal
Online Auction Software For Webmaster
Your Bank Statement Will Show A Charge By Clickbank
Cheap Meridia Online Free Shipping Money Order
Accelerated Business Degree Online
Hardware Internet Marketing Sales Software
Hispanic Radio Advertising For Physicians
Ebooks Online Shop Navman Pin 100 Portable Gps Pocket Pc
Online Accredited Webmaster Course
Pay Per Click Search Engine Management
Online Make Money Fast Free
Webmaster Software
Business From Home Internet Resource Work
Multimedia Search Engines
Fast Kid Make Money Ways
Business Home Make Money Online Work From Home Internet
Free California Real Estate License Ebook
Quick And Easy Ways To Make Money In Runescape2
Seo Visibitly
Earn Easy Money Uk
Home Decor Affiliate Programs
Internet Marketing Seo Saba
Tbnjvr0wh7uywwjphotos1 Blogger Comimg282916640g Mm Jpg
Seo Optimization San Diego
Certified Internet Webmaster
Vancouver Internet Marketing Consultant
Network Marketing Companies List
Network Marketing Opportunity
Webmaster Search Engine Optimization Rss Blogging
Free Business Money
Make Money While On The Internet
Organic Search Engine Optimization
Internet Business Scams
Propecia Side Effects Blogger
Marketing Promotion Site Uk Web
Marketing Promotion Site Tool Web
Search Blogger
Apply Online For A Business Low Apr Credit Card Deal
Fast Make Money Online
Affiliate Internet Marketing Online Program
Adsense Adwords Google
Seo Search Marketing
Online Pharmacy Home Business
Search Engine Optimization Company Dallas
Pay Per Click Search Engine Marketing
Web Site Promotion Internet Marketing San Diego
By Internet Internet Links Marketing Reciprocal Strategy
Web Site Submission Program Make Money Business Opportunity
Computer Work At Home
Make Money At Home Free Start Up
Domain Registration Q Affiliate Programs
Design Hosting Marketing Site Web
Earn Money Home
Totallytati Blogger
Increased On Line Traffic Seo Marketing Seo Expert
Search Make Money On The Internet
Search Engine Optimization Secrets
Make Money Marketing Online
Free Blogging
Education Search Engines
Business Internet Make Money Online Opportunity System
Small Business Loans Online