MINNEAPOLIS, MN – U.S. Reps. Scott Garrett (R-N.J.) and Rob Andrews (D-N.J.) today introduced legislation to clarify ambiguities in the Fair Debt Collection Practices Act (FDCPA). ACA International, The Association of Credit and Collection Professionals, strongly endorsed the measure and praised the action of the two congressional authors of the bill.
Enacted in 1977 to prevent abusive, unfair and deceptive debt collection practices and to encourage collection agencies to implement consistent, equitable collection policies, the FDCPA has been an important consumer protection law. However, in recent years, contradictory court rulings on some of the “gray” areas of the law have highlighted the need for clarification of certain provisions that have provided fertile ground for plaintiffs’ attorneys seeking to benefit from the law’s mandated attorney’s fees.
“ACA International worked hard to enact the FDCPA more than 25 years ago and continues to work hard to help shape the law governing so many association members,” said Gary Rippentrop, ACA’s CEO. “Passage of this legislation will help collection agencies operate in a responsible manner without the fear of being targeted by lawsuits over technicalities that tie up the U.S. court system and benefit plaintiffs’ attorneys rather than consumers.”
The proposed FDCPA amendments in the bill seek to clarify ambiguities, codify consumer protections and increase legal compliance by third-party collectors. Differing from more sweeping FDCPA reform legislation proposed in previous sessions, the current bill features eight clarifications or technical corrections, including three based on the recommendations of the Federal Trade Commission (FTC).
?This legislation will assist both consumers and debt collection professionals by clarifying some provisions of the law that have seen wide variations of interpretation by the courts,? said Andrews. ?Consumers? rights will be more clearly outlined, and debt collectors will be able to avoid frivolous lawsuits that only serve to damage the industry.? Rep. Garrett agreed. ?This legislation addresses the issue of fairness to consumers and is important to small businesses,? he said. ?It codifies what the FTC says should be done.?
Joining Reps. Garrett and Andrews as original cosponsors of the bill are Reps. Doug Bereuter (R-Neb.), Sue Kelly (R-N.Y.) and F. Allen Boyd Jr. (D-Fla.).
ACA International, formerly known as the American Collectors Association Inc., is the association for credit and collection professionals. Founded in 1939, ACA International has approximately 5,300 members, including third-party collection agencies, attorneys, credit grantors and vendor affiliates. Headquartered in Minneapolis, ACA International serves members in the United States, Canada and 58 other countries worldwide. For more information visit our new Web site at www.acainternational.org.
