Fair Debt Collection Act as it applies to in-house collections

[jasonh2]

I work at a diagnostic lab in NC. We have our own in-house collection team that works accounts prior to sending them to a 3rd party collection agency.

We received a hostile letter from a patient demanding we cease all communication with him and rather direct all correspondence and phone calls to a debt consolidation company.

My understanding is that the FDCA only applies to 3rd party collection agencies. Is that correct?

The debt is valid and we, as a policy, do not work with debt consolidation companies.

Could someone please offer some advice on how we should respond to this demand letter from the debtor?

Thanks,
Jason Huff

 

[jharris352]

That is correct. FDCPA only applies to 3rd party collections.

 

[negemo]

Yes, the FDCPA generally only applies to 3rd party debt collection companies. However, in-house debt collectors who use an alias will trigger the FDCPA. See Maguire v. Citicorp Retail Services, Inc., 147 F.3d 232 (2nd Cir., 1998)