Collection Attorney Changes
US Senator Pat Toomey has introduced a bill that encamps FDCPA collection attorneys under certain circumstances.
That bill offers a highly technical fix to the FDCPA that would exclude from the definition of “debt collector” any law firm or licensed attorney:
- serving, filing, or conveying formal legal pleadings, discovery requests, or other documents pursuant to the applicable rules of civil procedure; or
- communicating in, or at the direction of, a court of law or in depositions or settlement conferences, in connection with a pending legal action to collect a debt on behalf of a client.
The House bill has been heavily supported by NARCA. The group has noted that the bill offers a very technical fix to the FDCPA and would apply only when collection attorneys are “engaged in litigation practice within the purview of a court.” All other communications from collection attorneys must still comply with the FDCPA, according to the group.
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