FDCPA Update Bill from a Landlord's Perspective
by Mike Bevel, CollectionIndustry.com
The FDCPA welcomed a new acronym: the FSRRA or Financial Services Regulatory Relief Act. Passed shortly before the current mid-term-election recess, the legislation has been welcomed with open arms by property managers. Other insiders, though, seem somewhat “meh” about it, worrying that the new act doesn’t go far enough.
The act clarifies that a formal pleading does not constitute an initial communication under the FDCPA and, therefore, does not trigger the need for validation notice disclosures required by the Act.
The act goes on to addresses potential compliance conflicts that can trigger nuisance FDCPA lawsuits when an agency fulfills the notice requirements of the Gramm–Leach–Bliley Act, provides a consumer debtor with an Internal Revenue Code form such as the 1099–C, or complies with security breach and data security laws and regulations.
The act also protects the debt collector's right to collect within the 30-day validation period.
Jeanne McGlynn Delgado, vice president of property management at the National Multi Housing Council (NMHC) and the National Apartment Association (NAA), told MultiHousingNews.com that current law had presented some problems for property owners if they use the services of a third-party property management company or an attorney to submit notices or prepare court documents when faced with a resident who is behind in rent payments. While the FDCPA notice requirements generally do not apply when owners act on their own behalf, i.e., when issuing collection notices in their own name, they can apply to the attorneys they retain to collect back rent or initiate eviction proceedings.
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