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Home » Legal Articles » Worried About The Fair Debt Collection Practices Act

Worried About the Fair Debt Collection Practices Act?

Do you work for a financial institution that collects debts? If so, do you know whether the Fair Debt Collection Practices Act, 15 U.S.C. 1692 (the "Act") (http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm) regulates what you do? Do you fear that your collection practices might subject you or your company to liability? Relax. The Act generally does not apply to commercial foreclosures or the collection of commercial debts. (See my 11-1-06 article "Just What Is Commercial Foreclosure Law?" for more background.)

Personal, Family or Household Purposes. The Act focuses on obligations arising from consumer transactions. Bass v. Stolper, et al., 111 F.3d 1322 (7th Cir. 1997). "Debt," for purposes of the Act, is defined as an obligation to pay money arising out of a transaction that is "primarily for personal, family, or household purposes..." 15 U.S.C. 1692a(5). A nice article in the American Law Reports Federal explains the concept in detail: "What Constitutes 'Debt' for Purposes of Fair Debt Collection?" 159 A.L.R. FED. 121 (2000). Even individual guarantors of an obligation do not fall within the scope of the Act if the guaranty is part of a commercial transaction. See the Federal Trade Commission's website (http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm) for more discussion. My practice and blog are dedicated primarily to commercial deals, not consumer loans. If you're in the same boat, then essentially all you need to know about the Act is (1) it's out there, (2) a violation of it is a bad thing, but (3) it generally doesn't apply to you.

Behave Appropriately. The legal industry has some very creative attorneys, as well as some judges inclined to protect debtors. There are gray areas in the law. Legal principles evolve, as can the interpretation of statutes like the Act. For instance, the ALR article cites a case from Mississippi in which a commercial debt essentially was transformed into a consumer debt covered by the Act when the debt collector made "harsh, abusive, foul, obscene, indecent, uncouth, violent, threatening, intimidating, and harassing" phone calls to the debtor. So don't be reckless. Be mindful of the spirit of the Act, which Congress designed to eliminate abusive, deceptive, and unfair debt collection practices.

As a general proposition, however, you need not sweat the details of the Act if you're confident that you're dealing with a commercial transaction. When in doubt, however, follow the Act. Or, contact your lawyer for advice. In the past few years, there has been plenty of litigation involving the application and enforcement of the Act, so recent case law exists to help you or your lawyer determine whether your actions may be regulated.

And here is another random article you might be interested in...

Tips for Online Job Seekers

1.Searching for a job online

Pierre Omidyar's (pronounced Omidvar) first job out of university was that of a software developer, now he's the founder of ebay. Brad Pitt dressed up like a chicken before his breakthrough as an actor. Denise Donlon was a coffee house singer and until just recently held the post as President of Sony Music Canada. What we have in common with these individuals is that at one point, they had to apply for a job, just like you and I.

Where will you begin your search? Is there only one way to find a job? There are several ways to do so, but today we will cover the online option. Many of you already know that the internet now provides instant access to jobs 24/7. Former print Classifieds now appear online locally and nationally(i.e. workopolis). Companies go to career fairs, use recruiters and work with associations to reach their audience. As companies move ahead so does their recruitment methods. Not only do most companies use their websites to showcase their product or business, they now host a virtual human resources center containing career pages, online applications and job alerts.

Search engine tools like Google, Yahoo and Alta Vista, etc. using keywords such as careers, jobs, work, automotive, engineering jobs, are a good start. Be as specific as you can so that you will pull up the most accurate results. There is no hidden secret to finding a job online. It takes time, research and diligence.

2.Tools available with online job boards

Pick a job board that is suitable for you. What types of jobs are posted? Are the companies posting in your industry? Are there new listings every day? Ask yourself questions like this and what you are looking for from a job board. Make it work for you.

There are a variety of features on many job boards that help you to find what you need. Generally, job boards have a category search that comes up by date, specific industries, job titles, provinces, cities or keywords. These helpful tools pinpoint what you're looking for quickly.

Besides listings, there are many excellent employment related articles and career advice columns that can put you on the right track. Subscribe to newsletters that contain valuable tips about job hunting and current trends. Some of the information you may come across on any online job board are perhaps tips on how to put together a good resume or write a cover letter. There may be products advertised that may assist you in your quest, recommending books, resume writers and the like. If you don't have time to look for jobs everyday, once registered, Job agents can be set up on most accounts to let you know when job searches using the criteria you've entered show up on the job database. An automated email is then sent to your inbox with your selections and a hyperlink to the job making this easier and less time consuming.

3.Posting resumes online

To post a resume it goes without saying that you need to have one in the first place. As a new grad, you may or may not have jobs on your current resume that are relevant to the position that you're applying to. If you've done a co-op, put that on your resume, volunteer experience, etc. The most common resume is the basic chronological format which lists the most current job history, along with your educational background. Another type is the functional resume that lists your skill sets and potential which is suitable for those entering the work force. When this is done, download it until you need it. Once your resume is created, most job boards allow you to cut and paste your resume into your account so you don't have to perform the same function every time you apply to a position. With most sites, there are options to have more than one resume on your account. One is active, the others when you need them. Some job boards like Canjobs for example, allow your resume to be posted in five categories (for ie: automotive, engineering, etc.). Some allow privacy settings, which means not just anyone can view your resume or your personal information. The possible employers only see your information when you apply to them.

4.Targeting the Automotive industry

The employment potential in the automotive industry according to the Labour Market Information site run by Human Resources and Skills Development Canada is listed as good. Salary wages can vary between $13 an hour to $32.19 depending on location and experience. Employment prospects are closely associated with the outlook for the manufacturing sector. More than half of mechanical engineering technicians and technologists work in manufacturing. The most common industries are automotive, electronic/electrical products, automotive robotics and transport equipment technologies.

The modernization of equipment and processes will continue to affect the manufacturing sector. It should create demand for mechanical engineering technologists and technicians. At the same time, advanced technologies such as computer aided design, drafting and computer simulation will automate some of the work done by technicians. The rapid rate of technological change means those working in this field should plan for periods of retraining and skills upgrading. Opportunities for mechanical engineering technicians and technologists include areas such as production, mould making, quality control, machine and tool design, industrial automation and maintenance, consulting engineering and technical sales.

Industry association websites that are on the pulse of the industry such as AIA(Automotive Industries of Canada), APMA(Automotive Parts Manufacturers Association of Canada), CTMA(Canadian Tooling & Machining Association) or OACETT(The Technology Professionals in Ontario) contain useful information on outlooks, forecasts and jobs from companies directly involved with your specific industry.

5.Pros/Cons of online job boards

Online job boards were built to produce fast easy access for jobseekers and employers to meet. They can be efficient and resourceful. You need to consider these points in mind when using the job board right for you. Don't mass post your resume on every single site you see. This may not look good to potential employers or recruiters who search resumes or post on several sites. Initially, you may not like initial lack of human contact and automated responses and because of the exposure the job listing may receive, your application may get lost in the thousands of applications. Differentiate yourself with an tailored cover letter and decide what your job objective is.

With this in mind choose your online job board(s) wisely. They can assist you in your search when effectively used and help you to find your new career.