Fair Debt Collection: Scope of the act
This bill applies only to debts contracted by consumers for personal, family, or household purposes; it has no application to the collection of commercial accounts.
This bill applies only to debts contracted by consumers for personal, family, or household purposes; it has no application to the collection of commercial accounts.
While this legislation strongly protects the consumer’s right to privacy by prohibiting a debt collector from communicating the consumer’s personal affairs to third persons, the committee also recognizes the debt collector’s legitimate need to seek the whereabouts of missing debtors. Accordingly, this bill permits debt collectors to contact third persons for the purpose of obtaining the consumer’s location.
This legislation expressly prohibits a host of harassing, deceptive, and unfair debt collection practices. These include: threats of violence; obscene language; the publishing of “shame lists;” harassing or anonymous telephone calls; impersonating a government official or attorney; misrepresenting the consumer’s legal rights; simulating court process; obtaining information under false pretenses; collecting more than is legally owing; and misusing postdated checks.
Another significant feature of this legislation is its provision requiring the validation of debts. After initially contacting a consumer, a debt collector must send him or her written notice stating the name of the creditor and the amount owed. If the consumer disputes the validity of the debt within 30 days, the debt collector must cease collection until he sends the consumer verification.
This legislation also addresses the problem of “forum abuse,” an unfair practice in which debt collectors file suit against consumers in courts which are so distant or inconvenient that consumers are unable to appear. As a result, the debt collector obtains a default judgment and the consumer is denied his day in court.
Another common collection abuse is known colloquially as “flatrating.” A “flat-rater” is one who sells to creditors a set of dunning letters bearing the letter-head of the flat-rater’s collection agency and exhorting the debtor to pay the creditor at once. The creditor sends these letters to his debtors, giving the impression that a third party debt collector is collecting the debt. In fact, however, the flat-rater is not in the business of debt collection, but merely sells dunning letters.
Prohibited Practices: 27 enumerated practices, plus a catchall provision prohibiting other unconscionable or deceptive practices.
Scope: “Trade or commerce” includes advertising, buying, offering for sale, sale or distribution, or performance of any service, goods, article, commodity, or other thing of value. Goods include real estate, intangibles, and franchises. Leases and consignments are included. Private cause of action is limited to consumers, except for certain violations involving pyramid sales and seller-assisted marketing plans.
Prohibited Practices: Unfair methods of competition and unfair or deceptive acts or practices, including 57 enumerated practices, plus restrictions on several specific industries.
Scope: Trade or commerce.
Prohibited Practices: Deception, omission of material fact with intent that others rely on it.
Scope: Sale, offer for sale, advertisement, or lease of goods, intangibles, real estate or services.
Exclusions: Advertisements of publisher, radio or television media without knowledge; advertising complying with FTC regulations.
Private Remedies: None specified. (Courts imply private right of action.)
Limitations: None specified.
Prohibited Practices: Deceptive and unconscionable practices, including but not limited to 11 enumerated practices; concealment of material fact with intent that others rely on it in sale or advertisement of goods, services, or charitable contributions; pyramid schemes.
Scope: Sale or advertisement of goods, services, or charitable solicitations.
Prohibited Practices: 27 enumerated unfair practices and unfair or deceptive practices.
Scope: Transactions that are intended to result or which result in sale or lease of goods or services to any consumer.
Exclusions: Construction and/or sale of entire residence or all or part of commercial or industrial structure; sales of realty, including site preparation; dissemination of advertisements by any advertising medium with no knowledge of falsity; non-consumer transactions.
Prohibited Practices: Unfair, deceptive, untrue or misleading advertisements and unfair methods of competition, i.e., unfair, fraudulent or unlawful business acts or practices. Statute also restricts home solicitation sales, referral sales, charitable solicitations, and many other specific acts and practices.
Prohibited Practices: Numerous enumerated deceptive practices, plus separate sections on specific industries. Catchall prohibition of knowingly or recklessly engaging in any unfair, unconscionable, deceptive, deliberately misleading, false, or fraudulent act or practice.
Scope: Practices in course of a person’s business, vocation or occupation. The term “property,” used in many substantive prohibitions, is broadly defined to include real property, personal property, intangible property, or services.
Prohibited Practices: Unfair methods of competition and unfair or deceptive acts or practices.
Scope: Trade or commerce means the advertising, sale, lease, offer for sale or lease, or distribution of any services or property, real, personal or intangible, or anything else of value.
Exclusions: Transactions or actions permitted under law as administered by board or officer of state or U.S.; advertisements by publisher, radio and television media, with no knowledge of falsity, and with no direct financial interest in the sale of the product.
Prohibited Practices: Deceptive practices; omission of material fact with intent that others rely; unfair practices (defined by statute as FTC’s current standard).
Scope: Sale, offer of sale, attempt to sell, lease, or advertisement of merchandise, including objects, wares, commodities, goods, services, real estate or intangibles.
Prohibited Practices: 12 enumerated deceptive practices, including other conduct creating likelihood of confusion or misunderstanding.
Scope: In course of business, vocation or occupation.
Prohibited Practices: 35 enumerated deceptive, unfair or unlawful trade practices, including unconscionable terms.
Scope: Private cause of action must relate to trade practice, defined as any act which does or would create, alter, repair, furnish, make available, provide information about, or, directly or indirectly, solicit or offer for or effectuate a sale, lease, or transfer of consumer goods or services.
Prohibited Practices: Unfair methods of competition, unconscionable acts or practices, and unfair or deceptive acts or practices. Violations may be based on violation of FTC rules, FTC standards of unfairness and deception, or any statute, rule, regulation or ordinance proscribing unfair, deceptive, or unconscionable practices. Special restrictions on motor vehicle sales, added in 2001, are found at Fla. Stat. §§ 501.975 to 501.976 and are explicitly made actionable.
Prohibited Practices: 12 enumerated deceptive practices and conduct likely to create confusion or misunderstanding.
Scope: Action in course of business, vocation or occupation.
Exclusions: Conduct which complies with federal, state or local rules, orders, or statutes; publishers, broadcasters, printers or other persons who disseminate information without knowledge of deceptive character.
Prohibited Practices: Unfair or deceptive acts or practices in consumer transaction, including 36 itemized examples and special provisions for office supply transactions, health spas, telemarketing, Internet activities, home repair, roof repair, pre-need funeral contracts, and price-gouging in emergencies.
Prohibited Practices: False, misleading or deceptive trade practices, including 50 enumerated practices. Additional provisions regarding vehicle warranties, telemarketing, prizes and gifts, homeowners’ warranties, and cable television.
Scope: Very broad. Protects business consumers (including corporations and the government) as well as individuals purchasing goods or services for personal use.
Prohibited Practices: Unfair methods of competition and unfair or deceptive trade practices; antitrust violations.
Scope: Trade or commerce. Private action extended to consumer, defined to be natural person who primarily for personal, family or household purposes attempts to purchase, purchases, or is solicited to purchase goods or services or who commits money, property, or services in a personal investment. “Purchase” includes leasing and licensing. (Business entities can bring suit only for violation of prohibition of unfair competition.)
Prohibited Practices: 12 enumerated deceptive practices and catchall prohibiting conduct creating confusion or misunderstanding.
Scope: Actions in course of business, vocation or occupation by individuals, corporations, partnerships, trusts, estates, governmental agency or subdivision, unincorporated association, or any other legal or commercial entity.
Prohibited Practices: 19 enumerated unfair methods of competition and unfair or deceptive acts or practices including catchalls prohibiting misleading consumer practices and unconscionable practices, except the latter catchall does not apply to regulated lenders; special restrictions specific industries.
Prohibited Practices: Unfair methods of competition and unfair or deceptive acts or practices including concealment or omission of any material fact with intent to cause reliance, including many enumerated prohibitions; violation of UDTPA.
Scope: Trade or commerce, defined as advertising, sale, offering for sale, or distribution of any real, personal or intangible property or services, and any other thing of value.