Amendments to the FDCPA

As Pete Barry often says, all consumer problems eventually end up being debt-collection problems. Early in October, Congress made some key changes to the Fair Debt Collection Practices Act, which regulates the consumer debt collection industry. The main change is to the “mini-Miranda” warning that must accompany the debt collector’s first communication in writing. First, legal pleadings (but what about a summons?) will no longer be treated as an initial pleading requiring the mini-Miranda warning. Second, a debt collector may continue to collect during the initial 30-day validation period. Finally, the amendments except certain communications from being considered initial communications.

Unfortunately, the amendments also exempt certain bad-check enforcement firms from the FDCPA. With good intentions, I am sure, but the change has “loophole” written all over it.

See the Consumer Law & Policy Blog’s more timely post for some interesting commentary on the amendments.