UNITED STATES OF AMERICA
September 16, 1993
Mr. J.R. Zepkin, Lecturer
Dear Mr. Zepkin:
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 while collecting the debt collector's own debts (as a creditor) in its own name.
The answer to your question is both yes and no. The debt collector is still covered by the Act with respect to debts it collects for others; however, the creditor exemption immunizes the debt collector from the Act's applicability with respect to its own debts which it collects in its own name. Thus, an attorney-debt collector does not have to furnish a validation notice when sending a demand letter concerning debts that originated with the attorney.
The Commentary's comment on Section 811 refers to situations where the debt collector has been assigned an account by a creditor solely for the purpose of collecting it (or suing upon it) in its own name, but whatever recovery is obtained is ultimately returned to the creditor. See the exception in Section 803(4), "Definition of Creditor."
I hope this has been helpful.
John F. LeFevre