FTC Workshop: Done Deal?

The Federal Trade Commission next week will hold a two-day workshop to take a critical look at “the effects of technological, economic, and legal changes on the debt collection industry and whether the Fair Debt Collection Practices Act (FDCPA) and other laws have kept pace with the developments.”

The FTC is bringing out the big guns for the “Collecting Consumer Debts” seminar, with scheduled remarks from Chairman Deborah P. Majoras, Lydia B. Parnes, director of the consumer protection division, and Peggy L. Twohig, associate director of the financial practices division. 

It’s got to be big if they’re bringing the chairman, though this is being held just down the street from FTC headquarters near Capital Hill in Washington, D.C. If you can’t make it, there will be a live Web feed.

The ARM industry, and specifically the collection segment, will be watching developments closely. Cynics have been grumbling the FTC has already made up its mind to revamp the federal rules governing the industry ("Consumer Group to Demand FDCPA Changes at FTC Workshop," 9/21).

And ACA International, the collectors leading trade group, has begun moves to make itself a self-regulatory organization, an indication that the writing is on the wall for major changes in the business.   

The industry truly is number one—unfortunately it is in consumer complaints to the FTC. The widespread publicity that results from that bit of news always causes many collection agencies to bristle. Still, “50 Million Elvis Fans Can’t Be Wrong,” can they?

What are your thoughts on the FTC’s seminar? Will the industry get a fair hearing? Will the agency rewrite the FDCPA? What would you say if you were asked to speak?