State Collection Violation Is Not Necessarily An
FDCPA Violation
A Federal court has maintained that a California collection agency
did not violate the Fair Debt Collection Practices Act (FDCPA) by
attempting to collect from an Idaho resident, even though the agency
was not licensed in Idaho.
In its July 3 decision in the case of Wade v. Regional Credit
Association (1996 WL 366421 (9th Cir.[Idaho]) the U.S. Court of
Appeals for the Ninth Circuit upheld a lower court decision that an
agency's unlicensed collection activity does not violate the FDCPA.
This may well be a land mark case for Check Guarantee companies
that are not licensed in any state because they are collecting their
own debts, while creditor attorney's continue to look for
hyper-technical lawsuits to file.
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