collections law firms

[emilar]

What is the name of your state?IL
If a law firm acts as a collection agency, shouldn't they be licensed as a collection agency as well as a attorney? i've searched on the Illinois Dept of
Professional Licensing and can't find them? Do they get special priveleges being an attorney? I can find them on the llc search, but don't see where that allows them to collect debts.

[Debt Guy]

The rules of every state are different. Contact the IL regulatory body and ask about the requirements. Or go the the website for the regulatory body and read there.

In most states, law firms are licensed and regulated as law firms and are not required to be licensed as a collection agency.

[emilar]

IL
Thank you, Debt Guy. I've searched the Professional regulations site and they control doctors ,collection agencies, beauticians,etc.Everything but attorneys. I just wonder why that is? Is it because they are officers of the court?

[emilar]

I've been reading The FTC commentary on the FDCPA and it says:
Section 803(6) defines "debt collector" as a party "who uses any instrumentality of interstate commerce or the mails in . . . collection of . . . debts owed . . . another."

1. Examples. The term includes:

Employees of a debt collection business, including a corporation, partnership, or other entity whose business is the collection of debts owed another.
A firm that regularly collects overdue rent on behalf of real estate owners, or periodic assessments on behalf of condominium associations, because it "regularly collects . . . debts owed or due another."
A party based in the United States who collects debts owed by consumers residing outside the United States, because he "uses . . . the mails" in the collection business. The residence of the debtor is irrelevant.
A firm that collects debts in its own name for a creditor solely by mechanical techniques, such as (1) placing phone calls with pre-recorded messages and recording consumer responses, or (2) making computer-generated mailings.
An attorney or law firm whose efforts to collect consumer debts on behalf of its clients regularly include activities traditionally associated with debt collection, such as sending demand letters (dunning notices) or making collection telephone calls to the consumer. However, an attorney is not considered to be a debt collector simply because he responds to an inquiry from the consumer following the filing of a lawsuit.
The law firm I am referring to sent dunning letters and telephone calls (MANY). So ,Would I be remiss in assuming they are Debt collectors?Who would I contact for clarification of this? The FTC or the IAG, OR BOTH? Or am I just wasting my time?

[Debt Guy]

You are mixing apples and oranges.

The FDCPA defines debt collectors. Yes, a law firm can be a debt collector for this purpose.

State law defines what licensing requirements are.

For example, Asset Acceptance is a major junk debt buyer. They are subject to the FDCPA. However, their home state of Michigan does not define them as a collection agency. Thus, they are not required to be licensed in Michigan.

In most states, individual lawyers must be "licensed" or "admitted" to the state bar. The state bar or the state supreme court is the governing body. I am not aware of any state that has an independent licensing body for law firms.

A "collection law firm" is almost always subject to the FDCPA but seldom must be licensed as a collection agency. I am not aware of any state that requires a law firm to have such a license.

Make sense?

[emilar]

Yes, it does make sense. Thanks again. I'm sorry if I'm being a pain, just don't want to look too stupid in front of the judge.

[debtcollector`]

Originally Posted by emilar

...just don't want to look too stupid in front of the judge.

Then get an attorney

DC