Identifying the Facts and Issues

The Fair Debt Collection Practices Act attempts to prevent abuses by

collection agencies

$.$ Specialized

debt$-$collection agencies

and

attorneys

who regularly attempt to collect debts on behalf of someone else are considered debt collectors under the FDCPA. Creditors

are not

covered by the act unless they cause debtors to believe they are collection agencies. Rader

was

an attorney who regularly attempts to collect debts on behalf of someone else. Recover Debt

was

set up as a debt$-$collection agency.

Assessment question

Recover Debt

was

covered by the FDCPA, and it could not legally contact the debtor at the debtor's place of employment if the

debtor's employer

objects, contact the debtor at

inconvenient

or unusual times, or contact the debtor$$s

family

about the payment of a debt without court authorization. Recover Debt

did

do any of these activities.

Assessment question

If Recover Debt was covered by the FDCPA, it could not legally

harass

or intimidate the debtor using

abusive

language or

threats

$.$ Recover Debt

did

do this activity. Because of its behavior, Recover Debt likely

did

violate the FDCPA.

Assessment question

What If the Facts Were Different?

Assume that Rader started his business and bought the checks, then he set up a strict protocol for collecting the checks. Employees were trained to put together a file on each debtor with the information from the checks, information they could find on the Internet and any other information that they could find through public records searches. The employees first would send a letter to the most current address of the debtor, requesting a forwarding address if needed. After two weeks, if no payment had been made based on the letter, the employees would begin to call phone numbers for the debtors, including spouses and parents. These calls were made at dinnertime in order to catch people at home. They also would contact the debtor$$s most recent place of employment and any financial advisers. These calls were made during the workday and were to cease if the employer objected. Employees were trained to be firm but professional in the collection of the debt and to inform the debtor, or family members, that the company would pursue $$all legal remedies to collect on the debt.$$ Employees were also instructed not to communicate with debtors after receiving notice that the debtor refused to pay.

Under these facts, Recover Debt

select answer

covered by the FDCPA. Recover Debt

select answer

contact the debtor at the debtor's place of employment if the debtor$$s employer objected and

select answer

contact the debtor at inconvenient or unusual times. Recover Debt

select answer

contact individuals other than the debtors, including spouses and parents, and the debtors$$ employers or financial advisers. Recover Debt

select answer

harass or intimidate the debtor using abusive language or threats and

select answer

communicate with debtors after receiving notice that the debtor refused to pay.

Assessment question

Because of its behavior, Recover Debt likely

select answer

violate the FDCPA.