UNITED STATES OF AMERICA
FEDERAL TRADE COMMISSION
WASHINGTON, D.C. 20580

September 16, 1993

Stuart K. Pratt
Director, State Government Relations
Associated Credit Bureaus
1090 Vermont Ave., N.W.
Suite 200
Washington, D.C. 20005-4905

Dear Mr. Pratt:

This is in reply to your letter of August 16, 1993 concerning whether a debt collector is covered by the Fair Debt Collection Practices Act when it purchases defaulted accounts from the original creditor.

We consider the purchase of a defaulted account “. . . an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another." See Section 803(4) of the Act. As such, we do not believe that such a purchase removes the debt collector from Act coverage with respect to that account because it does not make the debt collector a creditor under Section 803(4).

I hope this has been helpful.

Sincerely,

John F. LeFevre