Page 20 - Microsoft Word - NEW 2017 Standard Program.docx

Several states, including Hawaii, Maryland, Michigan,
Oregon and Pennsylvania, require collateral recovery agencies to be licensed as collection
agencies. In addition, although lending institutions are exempt from the FDCPA as third-
party debt collectors they can be held liable for violations involving their self-help
repossession assignments. For those reasons, we have included the entire FDCPA.

Another reason we have included the entire FDCPA is that many of the violations
mentioned in the act are also included in each state’s specific law on debt collections.
Many of these violations in federal and state debt collection laws can apply to the
self-help repossession process.

These violations may include, but are not limited to: Acquisition of Location
Information; Harassment or Abuse; Communication with Debtor and/or Third
Party; False or Misleading Representations; and Furnishing Certain Deceptive
Forms. For this reason, we suggest you obtain a copy of your state’s Fair Debt
Collection Law, which generally can be located through a Google search.

By becoming familiar with the Act, you will also be able to discuss it intelligently with
your clients and prospects, as well as in a court of law should you become involved in
litigation in this area.

Note: It is abundantly clear that, In the event a Recovery Agent is charged with
Wrongful Repossession under the FDCPA, he/she can be sued under Section
1692f(6)(a) of the FDCPA. Such litigation can, and usually will, include the Recovery
Agency owner, the creditor and the insurance carrier.

THE ENTIRE FAIR DEBT COLLECTION PRACTICES ACT
FOLLOWS.

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