| What Was Really Said at the FTC Workshop on Debt Collection?
No matter what your role in debt collection, the recently held FTC Workshop on Debt Collection addressed a topic of importance to your business or practice. Skiptracing, availability of social security numbers, contacting debtors via e-mail or cell phone, not being able to pursue collection without detailed information about the debt and debtor, preemption of the FDCPA over state statutes are just a few of the issues discussed in depth during the two day workshop.
You can read the formal position papers submitted by dozens of individuals and organizations. However, to get a true understanding of what was discussed and where the lines are drawn or blurred between those collecting debts and those representing consumers, you had to be there or watch nearly 16 hours of video online.
The National List of Attorneys provides a better way. We have written a summary of each session presented during the workshop directly from the verbatim transcripts of the discussions.
Below is the summary of the first day. The second day summary will be sent in the next two weeks. Both will be also posted on The National List of Attorneys' web site www.nationallist.com.
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Summary of Panel Discussions
October 2007 FTC Workshop on Debt Collection Issues
Day 1, October 10, 2007
The FTC recently completed a two-day workshop on debt collection issues in Washington, DC on October 10 - 11, 2007. The written submissions from the many organizations and individuals are available online. Rather than summarize the written comments, this article provides the industry's first summary of the actual, verbatim panel discussions presented over the two-day workshop.
Deborah Majoras, Chair of the Federal Trade Commission, in her opening remarks stated that the purpose of the FTC workshop is to consider whether consumer protection laws kept pace with the changes that have occurred since the Fair Debt Collection Practices Act (FDCPA) was passed 30 years ago.
Numerous changes have occurred in business and society over the past 30 years:
- Many creditors are choosing to sell their uncollected accounts.
- Technological change also has had an impact on the industry.
- Innovations in the financial services marketplace gave consumers more choices including an array of options for paying for goods and services.
- With the increase in the amount of debt there has been an increase in the number seeking to collect on debts.
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The FTC continues to receive more complaints about third-party debt collectors than any other single industry. The number of complaints has increased steadily reaching 70,000 in 2006. Complaints thus far in 2007 are coming in at an even greater rate.
To read the entire Summary of Day One and for a printable version click here.
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