Member Alert
October 21, 2009

GENERAL ACCOUNTING OFFICE ISSUES REPORT ON THE DEBT BUYING AND DEBT COLLECTION INDUSTRIES TITLED:

"FAIR DEBT COLLECTION PRACTICES ACT COULD BETTER REFLECT THE EVOLVING DEBT COLLECTION MARKETPLACE AND USE OF TECHNOLOGY"

Today, the General Accounting Office provided its long awaited report on the Debt Buying and Debt Collection Industries directly to DBA International’s General Counsel. The report was initially requested by the Senate Permanent Subcommittee on Investigations in follow-up to the 2007 investigations on the credit card industry.

The Report Summary of findings states:

“Communications technologies that are ubiquitous today, such as mobile telephones, e-mail and voicemail, were not prevalent when FDCPA was enacted in 1977.  Significant uncertainty exists about how to use these technologies in compliance with the statute-for example, a debt collector may violate FDCPA if someone other than the debtor overhears a voice mail message revealing the debt collection effort.  Additionally, FDCPA does not provide FTC with rulemaking authority, which has limited the agency’s ability to address concerns related to the adequacy of account information, collectors’ use of modern technologies, and other issues that arise in an evolving marketplace.”

DBA International members cooperated in the data gathering phases of the report and DBA invited GAO members to attend its 2009 Annual Conference. Many DBA members answered background questions and cooperated with the GAO to better understand debt buying.

DBA International commends the General Accounting Office on its substantial efforts.  A copy of the Report can be found by clicking here: http://www.gao.gov/new.items/d09748.pdf.

This Alert is in no way intended to be legal advice and members are encouraged to consult with counsel of their choice.