Effects of Recently Proposed Amendments on FDCPA & Louisiana Debt Collection Laws

In a recent law amendment bill filled by a United States House of Representative from Michigan’s 11th district, Dave Trott, debt collection agencies that are law firms will be exempted from any liability in their actions as debt collectors even if otherwise harassing. Therefore, if this resolution were to pass, many collection agencies that masquerade themselves as law firms could not be sued for alleged violations of the Fair Debt Collection Act (FDCPA) or  Louisiana Debt Collection Laws. The FDCPA and Louisiana Debt Collection Laws prevent debt collectors from abusive practices and harassing consumers and provide a way for New Orleans FDCPA lawyers to represent clients at no cost.

The proposed amendments have attracted public reactions.  Consumer groups hold the view that if the bill is passed, attorneys and their law firms that operate large-scale collection agencies will get a free pass under the current unlawful debt practices as governed by the FDCPA and Louisiana debt collection laws.

Based on the current law, New Orleans lawyers are able to make debt collection law firms that violate the law by being untruthful, unfair, or treat consumers without dignity and respect pay consumers. This is what the legislator Trott seeks to overturn, and it has elicited a lot of concern from the public and consumer advocacy groups such as the National Association of Consumer Advocates and the National Consumer Law Center.

The Concerns Raised By the Consumer Groups on Louisiana Debt Collection Laws

Consumer groups hold that the bill by Trott is a possible conflict of interest that will benefit the legislator based on the following arguments:

*Image courtesy of Twitter via Dave Trott

1. Rep. Dave Trott is likely to resume his previous roles at his foreclosure firm after retiring from politics next year, and therefore the bill is a technical move aimed at protecting him when he has left Congress and is at work back in the law firm. This is a reasonable argument based on the fact that the legislator has announced he will leave active politics next year and therefore he is possibly seeking ways to protect himself from the FDCPA and Louisiana debt collection laws.
2. Rep. Dave Trott seeks to protect his law firm from a case that is pending judgment in federal court where the firm was sued for alleged violations of the FDCPA. This is also another reasonable argument because although Rep. Trott sold his stake in the law firm, he might be having some hidden interest in the law firm still. Therefore by promoting the bill, this is a possible conflict of interest aiming to guard the reputation of a firm he is associated with.

The FDCPA and Louisiana debt collection laws have the best interest of the citizens of the United States including Louisiana, Oklahoma, and other states; and therefore, they should be protected from this amendment.

Examination of the Current Louisiana Debt Collection Laws

These laws define how the debt collection firms will conduct themselves in a bid to collect unpaid debts from debtors. The FDCPA and Louisiana debt collection laws spell out clearly that a debtor should not be harassed by the debt collectors regardless if they are a firm or non-legal, registered debt collection agencies which firms like Paramount Law can help enforce. The citizens of Louisiana are protected from deceptive and abusive collection practices by debt collectors and debt collection law firms, and this protection is at stake if Rep. Trott’s amendment bill is passed by the legislators.

Louisiana credit reporting laws allow the citizens and New Orleans FDCPA lawyers to sue the debt collection law firms for damages caused when the lawyers are collecting the debts. However, this can only be done if there is proof of failure to follow the guidelines set by the FDCPA and Louisiana Debt Collection laws.

The possible implication, if Rep. Trott’s bill is enacted, is that debt collection agencies that are also legal firms cannot be liable for the actions when they are collecting the debts. Citizens interest must be upheld. Contact the New Orleans FDCPA lawyers at Paramount Law to see how we can help you!