2002 Update on the Federal Fair Debt Collection Practices Act

The federal Fair Debt Collection Practices Act (FDCPA or "Act") was enacted in 1977. This year's Survey marks twenty-five years of litigation under the Act. Over the years, many technical problems of interpretation under the Act have emerged and remain unresolved. The Federal Trade Commission (FTC) has repeatedly urged legislative amendments to the Act in its annual reports to Congress. This year, as well as last year, the FTC also requested an exemption to the Act's general prohibition on the power of the FTC to promulgate regulations under the Act. Specifically, the FTC requests an exemption for purposes of promulgating model collection letters which would insulate those debt collectors who use them from liability based on the form of the letter. In addition, two amendments were introduced in the U.S. House of Representatives in an attempt to resolve some of the technical issues and address various complaints. Many commentators have argued that the Act's technical nature has led to widespread abuse of the Act's attorneys' fees provisions by some attorneys. Over the years, this Survey has noted many of the same types of concerns about the direction of FDCPA litigation.