BOARD OF GOVERNORS
OF THE
FEDERAL RESERVE SYSTEM
WASHINGTON, D.C. 20551
DIVISION OF CONSUMER
AND COMMUNITY AFFAIRS
CA 97-3
June 12, 1997
TO THE OFFICERS AND MANAGERS IN CHARGE OF CONSUMER AFFAIRS SECTIONS:
SUBJECT: Revised examination procedures for the Fair Debt Collection Practices Act
Enclosed are the revised examination procedures for the Fair Debt Collection Practices Act which were recommended by the FFIEC and subsequently adopted by the Board. The Economic Growth and Regulatory Paperwork Reduction Act of 1996 amended the Fair Debt Collection Practices Act. The amendments which became effective on December 30, 1996, apply to all communications with consumers relating to debt collection after September 30, 1996. The amendments indicate that a debt collector may not fail to disclose in the initial written communication with the consumer, and the initial oral communication if it precedes the initial written communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose. In addition, the debt collector must disclose in subsequent communications that the communication is from a debt collector. (These disclosures do not apply to a formal pleading made in connection with a legal action.)
As a result of the amendments, the narrative has been revised. Please distribute these procedures to your examination staff for immediate use. If you have any questions regarding this matter, please feel free to contact the review examiner assigned to your district.
Sincerely,
(signed)
Shawn McNulty
Assistant Director