ACA International announced Friday its support for The Fair Debt Collection Practices Clarification Act, a bill introduced last month that would exempt collectors from liability when leaving voice messages.
U.S. Rep. Barney Frank (D-Mass.) introduced H.R. 4101 as a result of regulations that appear to conflict concerning collection agencies leaving voice mail messages, including a court ruling in Foti v. NCO Financial Systems Inc.
"[H.R. 4101] provides an essential fix to the “Catch-22” situation that ACA members face when reaching a consumer’s voice mail. By finding a safe harbor for leaving voice messages, H.R. 4101 has the potential to significantly reduce the frivolous lawsuits ACA members face," says ACA CEO Pat Morris. "Lawsuits relating to this so-called “Foti” problem have been recognized by ACA’s members as their number one problem, and this loophole for consumer litigation was targeted as a top priority for reform during ACA’s Legislative and Regulatory Strategic Planning Meeting for the 112th Congress."
The court's ruling in the Foti case forced collectors to disclose their identity on voice mails and messages left on answering machines. But because third parties may access voice mails, collectors sometimes were being sued under the Fair Debt Collection Practices Act for violating bans against third-party disclosure.
“We appreciate Representative Barney Frank for highlighting the Foti issue and look forward to working in a bipartisan fashion to help pass this important legislation,” says Morris.
H.R. 4101 would exempt collectors from liability when leaving voice messages, as long as they use language developed and approved by the Consumer Financial Protection Bureau.
