Saturday, January 08, 2005
In what states are original creditors subject to the FDCPA?
The answer to that is none of them. The Fair Debt Collection Practices Act (FDCPA), is a federal law and its writers exempted original creditors from its regulation.
So what about states that have their own version of the FDCPA?
Many do. However, federal law is the supreme law of the land and trumps state law whenever there is a conflict. This is clearly spelled out in the the supremecy clause of the constitution (Article VI).
That does not, however, preclude a state from creating laws that supplement, or afford greater protection to the public in its own constitution or statutes. The constitutional term for this is "concurrent powers".
States that have enacted consumer protection laws similar to the FDCPA have excersised their concurrent powers, however they cannot conflict with federal law. If you read the consumer protection laws of any of the 50 states (including the 23 advertised on CREDITWRENCH), none of them apply the FDCPA to original creditors. Though some will apply certain collection procedures to original creditors, absolutely none of them apply the entire FDCPA
As an example, Wisconsin is one of the states listed by CREDITWRENCH as applying the FDCPA to original creditors. I chose Wisconsin because its debt collection laws are fairly straight forward and brief. I will reference it here, and ask that you read it in its entirety. I defy you to find anywhere in Wisconsin statute that indicates the FDCPA applies to original creditors.
So what about states that have their own version of the FDCPA?
Many do. However, federal law is the supreme law of the land and trumps state law whenever there is a conflict. This is clearly spelled out in the the supremecy clause of the constitution (Article VI).
That does not, however, preclude a state from creating laws that supplement, or afford greater protection to the public in its own constitution or statutes. The constitutional term for this is "concurrent powers".
States that have enacted consumer protection laws similar to the FDCPA have excersised their concurrent powers, however they cannot conflict with federal law. If you read the consumer protection laws of any of the 50 states (including the 23 advertised on CREDITWRENCH), none of them apply the FDCPA to original creditors. Though some will apply certain collection procedures to original creditors, absolutely none of them apply the entire FDCPA
As an example, Wisconsin is one of the states listed by CREDITWRENCH as applying the FDCPA to original creditors. I chose Wisconsin because its debt collection laws are fairly straight forward and brief. I will reference it here, and ask that you read it in its entirety. I defy you to find anywhere in Wisconsin statute that indicates the FDCPA applies to original creditors.
Edit :01/09/2004 --I've just discovered that on Mar 28, 2003 Bill Bauer gave the following advice to a person I shall not name on here. "Citifinancial is an original creditor and are not subject to FDCPA unless one happens to live in one of the more than 20 states whose consumer protection laws bind them to FDCPA
Further proof that CREDITWRENCH supports the idea of original creditors being bound by the FDCPA in 23 states.
CREDITWRENCH indicating that 23 states apply the FDCPA to original creditors is false and misleading information.
CREDITWRENCH indicating that 23 states apply the FDCPA to original creditors is false and misleading information.
