Debt Collector: Definition

Debt Collector

A person who works in the in-house collections department of an original creditor or a collection agency to track down debtors and get them to pay what they owe. Debt collectors can be relentless, often using scare tactics, humiliation and repeated phone calls to extract payments or promises to pay.

Third Party Debt Collector

The Fair Debt Credit Practices Act (FDCPA) is a strict liability Congressional Act created to help keep third party debt collectors from engaging in debt collection practices that are abusive, misleading, false, deceptive or violate your right to privacy. But what defines "third party debt collector"?

Well, in the case of Heintz v. Jenkins, 514 U.S. 291 (1995) the Plaintiff sued a Bank on the basis that the Banks law firm violated the FDCPA by sending her a correspondence in attempt to collect a debt amount on behalf of the Corporation Bank, not owed and the Court agreed.

Traditionally, we think of a "third party" entity as being someone other than an employee of the creditor (the person owed the money). However, in Henitz the United States Supreme Court made a surprising landmark ruling that holds Attorney's strictly liable in the capacity of a debt collector even if he or she is an employee of the creditor. Don't get too excited here.

In August 2005, Congress amended the Act to include a clause for Attorney's to try and argue out of being held strictly liable. In that of having an "incidental fiduciary duty or relationship" with the creditor, which comes automatically in their duty of loyalty to their client, i.e. the creditor.

What is plainly visible is that Federal Courts take the words "strict liability" very seriously when enforcing the FDCPA. In essence, it is a Congressional Act with a serious bite even in its' 2005 amended form.

Other Debt Collection/Debt Collector News Media Articles

Learn What Your Rights Are:

Debtors Rights

Cease and Desist Letter

Sue Debt Collector

Your Right to Validation of Debts to Collection Agencies

Dealing With Debt Collections

Dealing With Debt Collectors

Get Debt Collectors Out of Your Life

Federal Trade Commission Opinion Letter on Validation

Federal Trade Commission Publications

Statute of Limitations

Fair Debt Collection Practices Act

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