ACA International Writes to Wall Street Journal to Set Record Straight

Press coverage in the wake of Monday’s announcement that the FTC had settled with a large debt buyer over time-barred debt has confused some of the central issues in the case, instead focusing on the size of the penalty — $2.5 million – or the potential impact it may have on the ARM industry.

Debt collection industry trade group ACA International sent a Letter to the Editor to the Wall Street Journal Wednesday to clarify one such issue in the story.

Below is the text of the letter:

Dear Editor,

As reported in the Wall Street Journal recently (“U.S. Gets Tougher on Debt Collecting”), the Federal Trade Commission issued a consent decree outlining, among other things, acceptable actions in the collection of debt in which the applicable state statute of limitations has expired.

In the United States, there is no universally defined statute of limitations on consumer debt in that it varies from state to state. Once a state statute of limitations has expired, with the exception of Wisconsin and Mississippi, the debt does not go away and attempts to collect may occur subject to state and federal laws.

ACA International and its members strongly support financial literacy and consumer education initiatives. We believe in a consumer’s right to respect and fair treatment and welcome the opportunity to work cooperatively with the FTC on activities related to these initiatives. For more information on consumer rights in debt collection, please visit www.askdoctordebt.org.

ACA International is proud of its members’ significant contributions to our national and state economies. We look forward to working with the FTC, Consumer Financial Protection Bureau and the states to create a system with balance between the important positive impacts of our industry and consumer protection.

Sincerely,

Pat Morris
CEO, ACA International