UNITED STATES OF AMERICA December 13, 1996 John E. Beekman, Esq. Dear Mr. Beekman: This replies to your letter of November 11, 1996, concerning the extent to which a debt collector must disclose, while collecting debts in its own name, its corporate connection with the creditor. The case you pose involves a debt collector that is a subsidiary of the parent company of the creditor. While I am not aware of any cases on this point (although they may exist), my recommendation, to avoid any perceived misrepresentation, is for the debt collector to make the disclosure proposed in your letter, i.e., that the debt collector is a subsidiary of the parent company of the creditor. This would meet the objectives of Section 812 as well as alleviate any concerns that the collector, by using its own name in collecting debts, is "holding itself out" as a third party wholly independent of the creditor. I hope this responds to your inquiry. Sincerely, John F. LeFevre |