Collector - July 2018 - 29

reported to a credit reporting agency
(CRA) and one for debts that will not
be reported to a CRA. The language the
asset buyer must use when collecting debt
that would be reported to credit reporting
agencies was:
The law limits how long you can be sued
on a debt. Because of the age of your debt,
we will not sue you for it. If you do not
pay the debt, we [company name], may
continue to report it to the credit reporting
agencies as unpaid.
The language the asset buyer must use
when collecting debt that would not be
reported to the credit reporting agencies was:
The law limits how long you can be sued
on a debt. Because of the age of your debt,
we will not sue you for it, and we will not
report it to any credit reporting agency.
The language examples above are only
required by the asset buyer involved in
the settlement agreement with the FTC,
but other courts have found that a debt
collector may violate the FDCPA by
failing to note a debt is out of statute.
Failing to disclose the status of the debt
in a settlement offer could be understood
by the least sophisticated consumer as a
chance to avoid legal action.
Cases in the Fifth, Sixth and Seventh
Circuits have ruled that settlement letters
that do not disclose limitations of the agency
when collecting out-of-statute debt could
violate the FDCPA. Additionally, those courts
have also ruled that letters seeking partial
payment on out-of-statute debts without
disclosing the potential consequences of
a partial payment could also constitute an
FDCPA violation. Debt collectors must also
carefully review state law as some states have
special text requirements for collecting outof-statute debts.
The agency I work for is currently
discussing the best method to handle out-ofstatute debt, including language required on
notices. When making these decisions, we
examine our agency's litigation atmosphere
as well as the litigation atmosphere in the
areas we operate, and we consult with our
counsel to arrive at a decision that best suits
the consumer, our clients and our business.

COLLECTOR 07.18

ACA has several SearchPoint™ documents
with a wealth of information on out-ofstatute debts.

STATE-REQUIRED LANGUAGE
Several states require special language in
collection letters. We should always be aware
of and comply with these requirements. When
providing any of the required language on the
back of a letter, the front of the letter should
include a reference to the back of the letter,
such as what our agency is currently using:
***SEE THE REVERSE SIDE OF
THIS LETTER FOR IMPORTANT
INFORMATION***
Additionally, the font type and size should
be the same on the back of the letter as it is on
the front of the letter.
ACA SearchPoint™ documents #2008 and
#3048 provide a great starting point for your
search into what specific language your state
requires.

SO, WHAT DO WE DO?
Without clear laws and expectations from
the courts, we must be cautious and diligent
with our notices. Pay attention to court
rulings both in and out of your circuit as
well as the consent orders issued by the
Bureau of Consumer Financial Protection.
Attend conferences, subscribe to industry
newsletters, reach out and network with
other professionals in your industry to keep
informed of what language others are using.
Changes are constant in our industry. Be
vigilant in reviewing changes that may affect
the requirements of the language you use
in notices. Meet with a qualified attorney to
review your letters and update them when
necessary. The time spent, and cost incurred,
could end up saving you the cost of defending
a lawsuit.
Ronna Denny is the senior vice president of
legal for CollectionCenter Inc. She earned
her bachelor's degree from Montana State
University-Billings and believes the credit and
collection industry is vital to the world's economy.
Laura Dadd is ACA International's
compliance analyst.

KEYNOTES

1

In Taylor v. Financial
Recovery Services, the
Second Circuit found that
a debt collection agency
did not violate the FDCPA
by not including an interest
disclosure in its collection
letters. ACA provided its
agency member with Industry
Advancement Program
support in the Taylor case.

2

Courts currently don't
agree as to whether a
collection agency is required
to include language notifying
a consumer of the negative
tax consequences.

3

When providing required
language on the back of
a letter, the front of the letter
should include a reference to
the back.
29



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
http://online.collector.com/collectormagazine/201906/
http://online.collector.com/collectormagazine/201905/
http://online.collector.com/collectormagazine/201904/
http://online.collector.com/collectormagazine/201903/
http://online.collector.com/collectormagazine/201902/
http://online.collector.com/collectormagazine/201901/
http://online.collector.com/collectormagazine/201812/
http://online.collector.com/collectormagazine/201811/
http://online.collector.com/collectormagazine/201810/
http://online.collector.com/collectormagazine/201809/
http://online.collector.com/collectormagazine/201808/
http://online.collector.com/collectormagazine/201807/
http://online.collector.com/collectormagazine/201806/
http://online.collector.com/collectormagazine/201805/
http://online.collector.com/collectormagazine/201804/
http://online.collector.com/collectormagazine/201803/
http://online.collector.com/collectormagazine/201802/
http://online.collector.com/collectormagazine/201801/
http://online.collector.com/collectormagazine/201712/
http://online.collector.com/collectormagazine/201711/
http://online.collector.com/collectormagazine/201710/
http://online.collector.com/collectormagazine/201709/
http://online.collector.com/collectormagazine/201708/
http://online.collector.com/collectormagazine/201707/
http://online.collector.com/collectormagazine/201706/
http://online.collector.com/collectormagazine/201705/
http://online.collector.com/collectormagazine/201704/
http://online.collector.com/collectormagazine/201703/
http://online.collector.com/collectormagazine/201702/
http://online.collector.com/collectormagazine/201701/
http://online.collector.com/collectormagazine/201612/
http://online.collector.com/collectormagazine/201611/
http://online.collector.com/collectormagazine/201610/
http://online.collector.com/collectormagazine/201609/
http://online.collector.com/collectormagazine/201608/
http://online.collector.com/collectormagazine/201607/
http://online.collector.com/collectormagazine/201606/
http://online.collector.com/collectormagazine/201605/
http://online.collector.com/collectormagazine/201604/
http://online.collector.com/collectormagazine/201603/
http://online.collector.com/collectormagazine/201602/
http://online.collector.com/collectormagazine/201601/
http://online.collector.com/collectormagazine/201512/
http://online.collector.com/collectormagazine/201511/
http://online.collector.com/collectormagazine/201510/
http://online.collector.com/collectormagazine/201509/
http://online.collector.com/collectormagazine/201508/
http://online.collector.com/collectormagazine/201507/
http://www.nxtbookMEDIA.com