House Financial Services Committee Evaluates Bill to Exempt Collection Lawyers from Fair Debt Collection Practices Act

In December, House Bill H.R. 4550, entitled “Practice of Law Technical Clarification Act of 2017,” was introduced by sponsors Vincente Gonzalez (D-Tex.) and Alexander Mooney (R-W. Va.). If passed, the bill would dramatically limit the legal protections to consumers currently provided by the federal Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692-1692o (“FDCPA”), by completely exempting collection lawyers from liability. Under current law, collection lawyers are treated the same as other debt collectors, and prohibited from engaging in abusive, misleading, or unfair collection practices. See Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, 559 U.S. 573 (2010). Westbrook Law PLLC has filed several lawsuits against collection law firms that violated the FDCPA. Those claims would not exist under the law as amended by H.R. 4550, and there is little question that the amendment would enable new and intensified abuses by collection law firms to go unchecked.

H.R. 4550 is currently being evaluated by the House Financial Services Committee, which may approve or kill the bill. Westbrook Law PLLC is actively engaging with committee members to ensure they are aware of the anti-consumer nature of this bill and to request that they do their part to prevent it from becoming law.

TJW

John Oliver, Consumer Advocate

As an attorney representing individuals in disputes with large corporations for nearly a decade, it has frequently occurred to me that most consumers are unaware of substantial legal rights they have, including laws that exist for the express purpose of protecting consumers from specific unfair business practices.  I have been surprised to find a kindred spirit in comedian John Oliver of HBO’s Last Week Tonight with John Oliver, whose concern with consumer affairs on the show has included major problems with credit reporting as well as debt collection and debt buying scams (caution: strong language).  I am pleased to see these troubling issues discussed in a popular forum, by a public figure with a genuine passion for consumer rights.

What Mr. Oliver does not explore in these entertaining and informative pieces are the legal frameworks available under the Fair Credit Reporting Act (“FCRA”) and Fair Debt Collection Practices Act (“FDCPA”), which encourage aggrieved consumers and their attorneys to act as “private attorneys general” to regulate the industries that abuse credit reports and those that resort to unfair and deceptive means of collecting seriously delinquent debts–some of which may even be time-barred, or not owed in the first place.  While these statutes and the numerous precedents that interpret them are not the stuff of late night television, they are major tools in the arsenal of consumer advocates such as myself, and can form the basis for significant recoveries for consumers themselves.