I know that the OC is held accountable to the laws within the FRCA and that CA's are held accountable to the laws within the FDCPA. Is it true that there can only be ONE original creditor and that if an account is sold or transfered, the assignee is now held accountable for the FDCPA, thus the validation process?
Re: OC responsibilities clarificati I think you've summed it up really well. I would only clarify this way: -- Original Creditor (OC) is obligated by the FCRA, FCBA, and TILA. -- Collection Agency (CA) is obligated by FDCPA in addition to both the FCRA and FCBA. I can't remember if CAs are impacted by TILA or not (anybody...?). The only thing you wrote that I would dispute is the idea that the CA is only held accountable to FDCPA. Just like OCs, CAs also have to report to credit bureaus in accordance with the FCRA. Anyway, I'm sure you know that, but it was worth clarifying for the casual lurker that might read this thread regardless. Doc
Re: OC responsibilities clarificati An exemption to that rule exists in the case of a debt obtained while not in default. See the following from the FDCPA act: ________________________________________________ Section 803 (6) (F) of the Act excludes from the definition of "debt collector": any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity . . . (ii) concerns a debt which was originated by such person; [or] (iii) concerns a debt which was not in default at the time it was obtained by such person. ______________________________________________ If an OC sells or transfers an account that is CURRENT at the time of sale the buyer is considered to be an OC and not covered by the FDCPA Only buyers of accounts not current at time of sale automatically fall under the FDCPA. There is an FTC opinion papers on this: http://www.ftc.gov/os/statutes/fdcpa/letters/albon.htm Hope this helps, JohnM
