Collector - July 2018 - 26

"Courts currently
do not agree as to
whether a collection
agency is required
to include language
notifying a consumer
of negative tax
consequences."

The Second Circuit had also previously
considered the question of interest
disclosures in Avila v. Riexinger &
Associates, LLC. In this particular case, it
was suggested that if a debt collector were
to include a disclosure of interest where
interest is accruing, she could use safe
harbor language stating, "[the] amount of
the debt stated in the letter will increase
over time" or by clearly stating that
payment of the amount set forth in the
notice will be accepted as payment in full
if paid by a specific date.
These cases illustrate the importance of
using disclosure language when necessary.
They also illustrate that both not providing
an interest disclosure and providing a
disclosure using safe harbor language
under the appropriate circumstances can
be acceptable under the FDCPA. However,
it's important to remember that these
decisions are only binding in the Second
Circuit and other courts are not obligated
to follow its reasoning.

Other circuits have examined this issue
as well, providing binding guidance in
those jurisdictions. The Seventh Circuit is
one such circuit that has examined both
sides of this issue. In Miller v. McCalla,
Raymer, Patrick, Cobb, Nichols and Clark
LLC, the debt collector did not itemize the
consumer's debt. The consumer in turn
claimed the letter was misleading.
In its analysis, the court provided suggested
language to be used when the amount of a
consumer's debt continues to fluctuate after a
collection letter has been sent:
"As of the date of this letter, you owe
$[amount due]. Because of interest, late
charges, and other charges that may vary
from day to day, the amount due on the day
you pay may be greater. Hence if you pay
the amount shown above, an adjustment
may be necessary after we receive your
check, in which event we will inform you
before depositing the check for collection. For
further information write the undersigned or
call 1-800-[phone number]."

Learn More:
Interest Disclosures in

Collection Notices
The decision in the recent Taylor v. Financial
Recovery Services Inc. case is expected to have
a positive effect on ACA members. Read more
about it on p.50.

26

ACAINTERNATIONAL.ORG


http://www.ACAINTERNATIONAL.ORG

Table of Contents for the Digital Edition of Collector - July 2018

Upfront
Industry News
Best Practices
FYI
Collection Tips
Navigating Uncharted Territory
Making Sense Out of Collection Notice Requirements
Do You Need to Contact Creditors to Verify a Debt?
Calendar
Honor Roll
Getting on the Right Path
A Better Framework
ACA Members Contribute to Successful Collectors Challenge Month
The ACA Int’l v. FCC Decision: What Does It Mean For Your Business?
Connecting with Legislators at ACA’s Washington Insights Conference
Second Circuit Rules for Accounts Receivable Management Industry in Case Supported by ACA’s Industry Advancement Program
Compliance
ACA SearchPoint
Ad Index
Last Word
Collector - July 2018 - Cover1
Collector - July 2018 - Cover2
Collector - July 2018 - 1
Collector - July 2018 - 2
Collector - July 2018 - 3
Collector - July 2018 - Upfront
Collector - July 2018 - 5
Collector - July 2018 - Industry News
Collector - July 2018 - 7
Collector - July 2018 - 8
Collector - July 2018 - 9
Collector - July 2018 - Best Practices
Collector - July 2018 - 11
Collector - July 2018 - FYI
Collector - July 2018 - 13
Collector - July 2018 - Collection Tips
Collector - July 2018 - 15
Collector - July 2018 - Navigating Uncharted Territory
Collector - July 2018 - 17
Collector - July 2018 - 18
Collector - July 2018 - 19
Collector - July 2018 - 20
Collector - July 2018 - 21
Collector - July 2018 - 22
Collector - July 2018 - 23
Collector - July 2018 - Making Sense Out of Collection Notice Requirements
Collector - July 2018 - 25
Collector - July 2018 - 26
Collector - July 2018 - 27
Collector - July 2018 - 28
Collector - July 2018 - 29
Collector - July 2018 - Do You Need to Contact Creditors to Verify a Debt?
Collector - July 2018 - 31
Collector - July 2018 - 32
Collector - July 2018 - 33
Collector - July 2018 - 34
Collector - July 2018 - 35
Collector - July 2018 - Calendar
Collector - July 2018 - Honor Roll
Collector - July 2018 - Getting on the Right Path
Collector - July 2018 - 39
Collector - July 2018 - A Better Framework
Collector - July 2018 - 41
Collector - July 2018 - ACA Members Contribute to Successful Collectors Challenge Month
Collector - July 2018 - 43
Collector - July 2018 - 44
Collector - July 2018 - 45
Collector - July 2018 - The ACA Int’l v. FCC Decision: What Does It Mean For Your Business?
Collector - July 2018 - 47
Collector - July 2018 - Connecting with Legislators at ACA’s Washington Insights Conference
Collector - July 2018 - 49
Collector - July 2018 - Second Circuit Rules for Accounts Receivable Management Industry in Case Supported by ACA’s Industry Advancement Program
Collector - July 2018 - 51
Collector - July 2018 - Compliance
Collector - July 2018 - 53
Collector - July 2018 - ACA SearchPoint
Collector - July 2018 - Ad Index
Collector - July 2018 - Last Word
Collector - July 2018 - Cover3
Collector - July 2018 - Cover4
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