Collector - March 2020 - 46

IAP

Making a Distinction
ACA's Industry Advancement Fund supports a case that provides guidance
on the question of when a state law violation becomes an FDCPA violation.
By Laura Dadd

A

s most professionals in the accounts
receivable management industry
know, consumer attorneys love
challenging every aspect of collection
letters, attempting to manufacture Fair
Debt Collection Practices Act violations.
The many FDCPA cases before courts
involving consumer collection letters
sharply illustrates this point. With the large
amount of litigation surrounding mailings,
it may seem impossible to communicate
with a consumer to collect a debt. However
disheartening this situation appears, courts
can provide sensible rulings. The case of
Klein v. Credico Inc. (Case No. 18-2776 (8th
Cir.)) is a good example of that.
In Klein, both the district court and the
U.S. Court of Appeals for the 8th Circuit
found that a collection letter containing a
collection company's registered name and

46

its abbreviation, as well as a signature of one
person not licensed to collect in the state, did
not violate the FDCPA.
The complaint alleged that the debt
collector violated the FDCPA when it sent a
consumer residing in Minnesota a collection
letter that included:
1.	 The name of the collection agency,
"Credit Collections Bureau," and
the phrase "Professional Debt
Collectors" beneath it. 
2.	 A statement informing the consumer
that: "When suit is filed, it could
result in a judgment against you and
that judgment could include the
following costs: filing fees; service of
process fees; the principal amount of
the debt and pre-judgment interest." 
3.	 The signature of three people,
including "Kathy Mitchell," who was

not registered to collect debts
in Minnesota.
4.	 A statement below the signatures
inviting the consumer to "[p]ay
on-line or correspond with CCB at
www.payccb.com." 
The district court found that the use of
"Professional Debt Collectors" and "CCB"
would not mislead an unsophisticated
consumer and the use of these terms was
immaterial. The district court also held
that Mitchell's signature and the statement
concerning pre-judgment interest did not
contravene the tenants of the FDCPA.
The consumer appealed each of the district
court's rulings in the case. Her first argument
concerned the use of the name "Professional
Debt Collectors" and the acronym "CCB."
The consumer stated that use of these names
violated the FDCPA because they were names

ACAINTERNATIONAL.ORG


http://www.payccb.com http://www.ACAINTERNATIONAL.ORG

Collector - March 2020

Table of Contents for the Digital Edition of Collector - March 2020

Collector - March 2020 - Cover1
Collector - March 2020 - Cover2
Collector - March 2020 - 1
Collector - March 2020 - 2
Collector - March 2020 - 3
Collector - March 2020 - 4
Collector - March 2020 - 5
Collector - March 2020 - 6
Collector - March 2020 - 7
Collector - March 2020 - 8
Collector - March 2020 - 9
Collector - March 2020 - 10
Collector - March 2020 - 11
Collector - March 2020 - 12
Collector - March 2020 - 13
Collector - March 2020 - 14
Collector - March 2020 - 15
Collector - March 2020 - 16
Collector - March 2020 - 17
Collector - March 2020 - 18
Collector - March 2020 - 19
Collector - March 2020 - 20
Collector - March 2020 - 21
Collector - March 2020 - 22
Collector - March 2020 - 23
Collector - March 2020 - 24
Collector - March 2020 - 25
Collector - March 2020 - 26
Collector - March 2020 - 27
Collector - March 2020 - 28
Collector - March 2020 - 29
Collector - March 2020 - 30
Collector - March 2020 - 31
Collector - March 2020 - 32
Collector - March 2020 - 33
Collector - March 2020 - 34
Collector - March 2020 - 35
Collector - March 2020 - 36
Collector - March 2020 - 37
Collector - March 2020 - 38
Collector - March 2020 - 39
Collector - March 2020 - 40
Collector - March 2020 - 41
Collector - March 2020 - 42
Collector - March 2020 - 43
Collector - March 2020 - 44
Collector - March 2020 - 45
Collector - March 2020 - 46
Collector - March 2020 - 47
Collector - March 2020 - 48
Collector - March 2020 - 49
Collector - March 2020 - 50
Collector - March 2020 - 51
Collector - March 2020 - 52
Collector - March 2020 - Cover3
Collector - March 2020 - Cover4
http://online.collector.com/collectormagazine/202004
http://online.collector.com/collectormagazine/202003
http://online.collector.com/collectormagazine/202002
http://online.collector.com/collectormagazine/202001
http://online.collector.com/collectormagazine/201912
http://online.collector.com/collectormagazine/201911
http://online.collector.com/collectormagazine/201910/
http://online.collector.com/collectormagazine/201909/
http://online.collector.com/collectormagazine/201908/
http://online.collector.com/collectormagazine/201907/
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