InfoBytes Blog
Twenty state Attorneys General oppose bill that would remove attorneys engaged in debt collection litigation from FDCPA purview
On April 19, a coalition of twenty state Attorneys General issued a letter to leaders of Congress expressing opposition to the Practice of Law Technical Clarification Act, HR 5082, which would amend the FDCPA to exclude law firms and attorneys engaged in debt collection-related litigation activities from the scope of the FDCPA. The House Financial Services Committee passed HR 5082 on March 21 with a vote of 35-25. In the letter, the Attorneys General state, “debt collection lawsuits comprise the majority of many state-court dockets” and note numerous actions brought by the CFPB and state Attorneys General against debt collection law firms and attorneys for illegal collection practices. The letter argues that debt collection attorneys should be held accountable when using litigation for improper purposes and that HR 5082 would preclude Attorneys General from using the FDCPA to pursue improper behavior. Additionally, the letter notes, “the FDCPA is the only consumer protection tool available to State Attorneys General in a significant number of jurisdictions where state consumer protection law does not govern the conduct of attorneys.”