PRESS RELEASE
“As the Trump administration continues to dismantle basic protections for consumers, Congress is now considering doubling down – attempting to shield abusive debt collection law firms from being held accountable for their intimidation and harassment tactics,” said Attorney General Schneiderman. “My office has not hesitated to take on crooked debt collectors that target New Yorkers, and we will continue to do so, no matter what happens in Washington.”
If enacted, the Practice of Law Technical Clarification Act would amend the federal Fair Debt Collection Practices Act (FDCPA) to exclude law firms and licensed attorneys engaged in “litigation activities,” shielding them from liability for abusive practices and preventing state attorneys general from using the FDCPA to bring enforcement actions against them. The amendment would also bar individuals from suing debt collection lawyers for damages and reasonable attorneys’ fees. Such lawsuits supplement the work of attorney general offices across the country.
Today’s letter comes in response to the House Financial Services Committee’s decision to vote the Practice of Law Technical Clarification Act out of committee.
The letter, which was led by Massachusetts Attorney General Maura Healey, was signed by the Attorneys General of California, Delaware, Hawaii, Iowa, Maine, Massachusetts, Maryland, Michigan, Minnesota, Nebraska, New Jersey, New Mexico, New York, North Carolina, Pennsylvania, Rhode Island, Vermont, Virginia, Washington and Washington D.C.
Click here to read more about consumer rights related to debt collection.