Debt Collector May Notify You When Collection Activity Stops
By Andy Miofsky, Illinois Bankruptcy Attorney on Oct 30, 2007 in Collection Issues, Consumer Protection, Debt Collector Abuses, Illinois
In a letter opinion dated October 5, 2007, the Federal Trade Commission decided that a debt collector could communicate the cessation of collection activity so long as it was not attempting to collect a debt in doing so, and so long as it did not violate any other Fair Debt Collection Practices Act provision.
ACA International is the flagship organization of the leading credit collection industry participants. ACA has adopted a Code of Ethics and Code of Operations to define industry accepted practices. One such practice involves notification when a collector ceases collection activity on an account due to the inability to provide verification of the debt.
Currently, the ACA Code requires a collector notify the creditor or legal owner of the account that collection activities have been terminated if the collector is unable to verify a disputed debt. The ACA sought an opinion from the Federal Trade Commission whether collectors could go one step further and notify the consumer that the collector was terminating collection of the account.
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