debt collection

Special counsel, retained to collect debt on behalf of the Attorney General (AG) owed to the state, don’t violate the Fair Debt Collection Practices Act (FDCPA) when they use AG letterhead to communicate with debtors. The Supreme Court’s opinion in Sheriff v. Gillie written by Justice Ginsburg is unanimous.

An amicus brief filed by Michigan and 11 other states supporting Ohio cites a recent study concluding that all 50 states use “private collection agencies to some degree and ‘at some point in the process.’”

Tomorrow the Supreme Court will hear oral argument in Sherrif v. Gillie.

Per the Fair Debt Collection Practices Act (FDCPA) debt collectors may not make false, deceptive, or misleading representations. FDCPA targets independent debt collectors who lack incentives to act fairly because they “are likely to have no future contact with the consumer and often are unconcerned with the consumer’s opinion of them.”

The definition of debt collectors excludes “officers” of the State.