The Fair Debt Collection Practices Act (FDCPA) as applies to collection attorneys.

A U.S. Court of Appeals case for the Third Circuit found that every time a collector, or attorney who is subject to the Act, contacts a debtor in an effort to collect a debt, the creditor’s representative should recite the Mini-Miranda to the debtor, stating that federal law requires the creditor to inform debtor that this is an attempt to collect a debt and any information obtained will be used for that purpose.

The court indicated that the cautionary advice should be provided to the debtor on each occasion there is contact with the debtor, not just the first contact.

In another case, the Second Circuit held that a debt collector’s computer generated collection letters violated the strict prohibition against deceptive practices in the FDCPA.

There, the debt collector’s letters falsely stated that the creditor had given the collector authority to initiate legal proceedings against the debtor, when, in fact, the creditor retained the right to initiate legal action.

Moreover, a second letter generated by the debt collector included reference to the various proceedings supplemental to a judgment that are available to enforce collection. The court found that these threats to take action that are not intended to be taken also violated the Act.

Charles R. Harroun, Attorney at Law