More On Reading A Consumer Their Collection Rights
Congress, at the eleventh hour, modified the Fair Debt Collection Practices Act (FDCPA) and approved changes which make the required notice to consumers a bit easier on debt collectors.
As amended, the Mini-Miranda statement, "This is an attempt to collect a debt and any information obtained will be used for that purpose," will be required in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication.
Of course, if the state law requires a greater obligation of the debt collector, then the state law will supersede the federal law.
Now, if you think that this doesn't really matter to retailers, or to you when you are selling check services, think again.
Twenty-two states and the District of Columbia require creditors who collect their own debts to adhere to the same laws as third party collection agencies.
Those states are: Arkansas, California, Colorado, Connecticut, Florida, Kansas, Louisiana, Maine, Maryland, Massachusetts, Michigan, New Hampshire, New York, North Carolina, Oregon, Pennsylvania, South Carolina, Texas, Vermont, West Virginia, and Wisconsin.
In these states the retailers are subjecting themselves, if they fail to properly comply, with a potential liability of $1,000.00. This might make a retailer more willing to listen to the check services option, rather than a do-it-yourself approach to checks.
