CFPB files amicus brief in FDCPA case regarding language used on envelopes

This story appeared in Bank Digest.                                   

The Consumer Financial Protection Bureau has issued an amicus brief in the case of Preston v. Midland Credit Management, Inc.. This case concerns the Fair Debt Collection Practices Act's prohibition of a debt collector's use of any language or symbol other than the collector's address—and the collector's business name if it does not indicate the individual is in the debt collection business—on any envelope when communicating with a consumer by "use of the mails" or telegram.

The U.S. Court of Appeals for the Seventh Circuit invited the Bureau to file an amicus brief on: (1) whether there is a benign language exception to this prohibition and, if so; (2) whether the phrase "TIME SENSITIVE DOCUMENT" falls within that exception as a matter of law.

The Bureau argued that there is no benign language exception but clarified that the FDCPA permits debt collectors to include language or symbols on an envelope that facilitate making "use of the mails," such as a USPS barcode. The Bureau further argued that if the court did adopt a benign language exception, then whether "TIME SENSITIVE DOCUMENT" would fall within that exception would be a question of fact.