Nearly 40 collection attorneys gathered here today to visit with their elected officials, lend their support for pending legislation, and promote understanding of the profession.
The National Association of Retail Collection Attorneys? major legislative concern is H.R. 3533, the Fair Debt Collection Practices Technical Amendment Act of 2001. H.R. 3533 would change the definition of ?communications? under the Fair Debt Collection Practices Act (FDCPA) to exclude actions taken under the Federal Rules of Civil Procedure and state rules of procedure.
?This is a narrowly-tailored amendment. It basically allows collection attorneys to pursue litigation without being in violation of the FDCPA,? said Shaine McMahon, NARCA?s Executive Director.
The FDCPA went into effect in 1978 to regulate and promote ethical practices in the activities of debt collectors. In 1986, the FDCPA was expanded to include attorneys engaged in debt collection. NARCA members expend significant time and effort to fully comply with FDCPA provisions. Under the current FDCPA, attorneys practicing debt collection are faced with a compliance ?Catch-22.? If an attorney strictly complies with the FDCPA in the conduct of a legal debt collection, he or she is faced with violating rules of procedure, and may be subject to sanction. Alternatively, if an attorney properly complies with rules of procedure, he or she could face federal enforcement penalties for violating the FDCPA. H.R. 3533, if passed, would correct this conflict.
Nearly 500 creditors and collection law firms will meet this week (June 6-8, 2002) as part of NARCA?s Spring Collection Conference in Washington, DC. This education event will focus on legal compliance, ethics, and day-to-day practice issues of legal collection. For more information, visit: www.narca.org.
