FTC tightens debt collections post-mortem

Discussion in 'Current Events' started by Modbert, Nov 30, 2010.

  1. Modbert
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    Modbert Daydream Believer Supporting Member

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    FTC tightens debt collections post-mortem - UPI.com

    This is a terrible idea to say the least.
     
  2. boedicca
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    boedicca Uppity Water Nymph Supporting Member

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    It wouldn't hurt to actually read the source document before pontificating.

    SUMMARY: The Federal Trade
    Commission (‘‘FTC’’ or ‘‘Commission’’)
    requests public comment on a proposed
    statement of enforcement policy
    regarding communications in
    connection with collection of a
    decedent’s debts.1 The statement
    addresses three issues pertaining to debt
    collectors who attempt to collect on the
    debts of deceased debtors. First, the
    proposed statement announces that the
    FTC will not bring enforcement actions
    for violations of Section 805(b) of the
    Fair Debt Collection Practices Act
    (‘‘FDCPA’’), 15 U.S.C. 1692c(b), against
    collectors who, in connection with the
    collection of a decedent’s debt,
    communicate with a person who has
    authority to pay the decedent’s debts
    from the assets of the decedent’s estate.
    Second, the proposed statement clarifies
    how a debt collector may locate the
    appropriate person with whom to
    discuss the decedent’s debt. Third, the
    proposed statement emphasizes to
    collectors that misleading consumers
    about their personal obligation to pay a
    decedent’s debt is a violation of the
    FDCPA and Section 5 of the Federal
    Trade Commission Act (‘‘FTC Act’’), 15
    U.S.C. 45.



    https://ftcpublic.commentworks.com/...TC_FRDOC_0001-0407_deceaseddebtcollection.pdf


    In summary, a debt collector may contact somebody who has authority over or represents the estate of a deceased about a debt owed by the deceases, and may not mislead others into thinking that they themselves are liable.
     

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