The American Collectors Association had a busy 1995, lobbying Capitol Hill for legislation favorable to the collection industry.
In the all-important area of amendments to the Fair Debt Collection Practices Act (FDCPA), three ACA-supported provisions were placed in S.650, the Economic Growth and Regulatory Paperwork Reduction Act of 1995, which was reported out of the Senate Banking, Housing and Urban Affairs Committee in late December. The first would require collectors to provide a "Mini Miranda Warning" only in the initial written communication with a debtor. The second amendment would codify the Federal Trade Commission's recommendation that collectors can demand payment within the 30-day validation period, unless the debtor disputes the debt. The third provision would overturn a 1995 Supreme Court decision which required attorneys to follow the FDCPA even when pursuing legal action. All three are scheduled up during April 1996.
In addition, while attending the February ACA Legislative Conference in Washington DC, the ACA awarded me the 1995 Beacon Award for legislative efforts on behalf of the industry.
This award gave me the opportunity to leverage this recognition and gain an audience with Mr. David Medine, Associate Director for Credit Practices at the Federal Trade Commission, Bureau of Consumer Protection.
I met with Mr. Medine on February 6, and based on this meeting we are currently working to define, if possible, a voluntary compliance position on behalf of the Check Guarantee Industry, as it relates to the FDCPA. The "Guarantee Industry" has traditionally fallen outside the provisions of the FDCPA, but is regularly hammered by attorneys who see it otherwise.
Efforts are underway to attempt a voluntary limited FDCPA compliance in favor of an FTC opinion letter stating that such steps are in keeping with the Bureau's Consumer Protection Charter.
Those of us who have spent a number of years in these particular trenches, are feeling that 1996 could well be a significant legislative year for the Industry.
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