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  1. #1
    Join Date
    Feb 2005
    Posts
    116

    Default Does The FDCPA Apply To Debt Scavengers?

    Does anyone know if the Fair Debt Collection Practices Act applies to debt scavengers who purchase debts and own them outright?

  2. #2
    Join Date
    Jan 2006
    Posts
    38,867

    Default Re: Does The FDCPA Apply To Debt Scavengers?

    yes, it does

  3. #3
    Join Date
    Mar 2005
    Location
    Florida
    Posts
    435

    Default Re: Does The FDCPA Apply To Debt Scavengers?

    yes, JDB's get to stand in the original creditors place for suing you over a debt, but they are still bound by the FDCPA.

  4. #4
    Join Date
    Nov 2007
    Posts
    811

    Default Re: Does The FDCPA Apply To Debt Scavengers?

    While the Arbuckle letter is not binding, the FTC does view a junk debt buyer/scavenger as a third party collector. They are not the initial extenders of credit, but a third party who purchases portfolios of debt on which to collect.
    http://www.expertlaw.com/forums/showthread.php?t=35263
    http://www.ftc.gov/os/statutes/fdcpa...s/arbuckle.htm

    Quote Quoting Mr. Clarke W. Brinckerhoff, Attorney, Federal Trade Commission
    In sum, it is our view that a party that obtains consumer obligations in default for the purpose of collection is a "debt collector" under the FDCPA, even if that party actually purchases the accounts from the original creditor.

    The views set forth in this informal staff opinion letter are not binding on the Commission.

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