[Federal Register Volume 64, Number 123 (Monday, June 28, 1999)]
[Unknown Section]
[Pages 34532-34533]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-15841]
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FEDERAL TRADE COMMISSION
16 CFR Part 901
Procedures for State Application for Exemption From the
Provisions of the Fair Debt Collection Practices Act
AGENCY: Federal Trade Commission.
ACTION: Final rule.
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SUMMARY: This document amends the procedures by which a State may
request that the Commission exempt certain debt collection practices
within that State from the provisions of the Fair Debt Collection
Practices Act. The amendments are intended to make the procedures more
convenient and less burdensome by permitting supporting documents to be
submitted in either paper or electronic form, and by eliminating the
requirement that States submit certain information.
EFFECTIVE DATE: June 28, 1999.
FOR FURTHER INFORMATION CONTACT: Thomas E. Kane, Attorney, Division of
Financial Practices, Federal Trade Commission, 600 Pennsylvania Avenue,
N.W. Washington, D.C. 20580, (202) 326-3224, E-mail [[email protected].].
SUPPLEMENTARY INFORMATION: The Fair Debt Collection Practices Act, 15
U.S.C. 1692 (``FDCPA''), prohibits the use of deceptive, unfair and
unfair and abusive practices by third-party debt collectors. Section
817 of the FDCPA, 15 U.S.C. 1692o, requires that the Commission, by
regulation, exempt from its requirements ``any class of debt collection
practices within any State if the Commission determines that under the
law of that State, the class of debt collection practices is subject to
requirements substantially similar to those imposed by [the FDCPA], and
that there is adequate provision for enforcement.'' Pursuant to that
requirement, the Commission promulgated procedures for State
applications for exemption from the provisions of the FDCPA
(``Procedures''), 44 FR 21005 (Apr. 9, 1979). The Procedures, codified
in 16 CFR Part 901, provide that any State may apply to the Commission
for a determination that, under the laws of that State: (1) a class of
debt collection practices within that State is subject to requirements
that are substantially similar to, or provide greater protection for
consumers than, those imposed under sections 803 through 812 of the
FDCPA; and (2) there is adequate provision for State enforcement of
such requirements. Since the adoption of these Procedures, the
Commission has received one application for exemption, from the State
of Maine, and granted that exemption.\1\
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\1\ Notice of Maine Exemption from the Fair Debt Collection
Practices Act, 60 FR 68173 (Dec. 27, 1995).
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In accordance with the FDCPA and the Commission's plan for Periodic
Review of Commission Rules,\2\ the Commission published a document in
the Federal Register on April 22, 1998, requesting public comments
regarding the overall costs and benefits and continuing need for the
Procedures.\3\ The Commission received comments from the Maine
Department of Professional and Financial Regulation (``Maine''), the
Massachusetts Commission of Banks (``Massachusetts''), and the Credit
Union National Association, Inc. (``CUNA'').
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\2\ 46 FR 35118 (July 7, 1981).
\3\ 63 FR 19859.
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Comments Received and Amendments Adopted
Maine urged the Commission to maintain the Procedures in their
current form. Massachusetts suggested that the Commission streamline
the Procedures to make them less burdensome for states applying for an
exemption. As noted below, the Commission has adopted several
amendments that serve to streamline the Procedures.
CUNA recommended that the Procedures be amended to permit
electronic applications over the Internet. The Commission agrees that
the Procedures can be made more convenient for States by incorporating
the use of current technology in the application process to the extent
possible. Accordingly, the Commission is amending Sec. 901.3 to clarify
that States may submit documents supporting their applications in
either paper or electronic form, thus allowing States to submit
supporting documents, for example, by electronic mail over the Internet
or on a floppy disk if they prefer that method to mailing paper copies
of the documents. The Commission, however, has determined not to amend
Sec. 901.2 of the Procedures to permit States to file the exemption
application itself electronically because that document must be signed,
and the Commission's Rules of Practice require a hand signed signature.
See 16 CFR 4.2(e) (filing requirements).
The Commission is also amending the Procedures to correct a
technical inconsistency and eliminate the need for States to submit
information not essential to the Commission in determining, for
purposes of an exemption application, that State law and administrative
enforcement offers at least as much protection as the FDCPA does.
Specifically, Sec. 901.3(d)(2) and (3) require States to submit
documents showing that civil liabilities for a failure to comply with
their State law are substantially similar to, or more extensive than,
civil liabilities provided for under section 813 of the FDCPA. Section
901.4(b)(2) and (3) of the Procedures require that the Commission then
compare the State civil liability provisions to the section 813
provisions. At the same time, however, Sec. 901.6(d) provides that no
exemption, if any, granted by the Commission shall extend to the civil
liability provisions of section 813. This prohibition renders the
results of the Sec. 901.3(d)(2)-(3) and section 813 comparison
superfluous. Although the Commission received no response to its
request for comments on this issue,\4\ it has deleted
Sec. Sec. 901.3(d)(2) and (3) and 901.4(b)(2) and (3) because they
serve no critical purpose in light of the paragraph 901.6(d)
limitation. Moreover, removing these paragraphs will benefit States
that apply for FDCPA exemptions as well as the Commission by reducing
the number of documents that the states must produce and the
[[Page 34533]]
number of statutory comparisons that the Commission must conduct.
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\4\ 63 FR at 19860 n.7.
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Consistent with the Administrative Procedure Act, the Commission is
adopting these amendments as final without further notice or public
comment. See 5 U.S.C. 553(A), (B). To the extent these Procedures
involve a ``collection of information'' within the meaning of the
Paperwork Reduction Act, 44 U.S.C. 3501-3520, that collection has
already been approved by the Office of Management and Budget (OMB) and
assigned control number 3084-0047. The present amendments do not modify
the existing requirements to require any new or additional collection
of information. Furthermore, the requirements of the Regulatory
Flexibility Act also do not apply to these amendments, which will not
have a significant economic impact on a substantial number of small
entities within the meaning of that Act. See 5 U.S.C. 601, 605(b).
List of Subjects in 16 CFR Part 901
Administrative practice and procedure, Consumer protection, Credit,
Intergovernmental relations.
For the reasons set forth in the preamble, Part 901 of Chapter I of
Title 16 of the Code of Federal Regulations is amended as follows:
PART 901--PROCEDURES FOR STATE APPLICATION FOR EXEMPTION FROM THE
PROVISIONS OF THE ACT
1. The authority citation for part 901 continues to read as
follows:
Authority: Pub. L. 95-109, 91 Stat. 874, 15 U.S.C. 1692o; 5
U.S.C. 552.
2. Section 901.3 is amended by revising the introductory text and
paragraph (d) to read as follows:
Sec. 901.3 Supporting documents.
The application shall be accompanied by the following, which may be
submitted in paper or electronic form:
* * * * *
(d) A comparison of the provisions of the State law that provides
for enforcement with the provisions of section 814 of the Act, together
with reasons supporting the claim that such State law provides for
administrative enforcement of the State law referred to in paragraph
(a) of this section that is substantially similar to, or more extensive
than, the enforcement provided under section 814 of the Act.
* * * * *
3. Section 901.4 is amended by revising paragraph (b) to read as
follows:
Sec. 901.4 Criteria for determination.
* * * * *
(b) In determining whether provisions for enforcement of the State
law referred to in Sec. 901.3(a) are adequate, consideration will be
given to the extent to which, under State law, provision is made for
administrative enforcement, including necessary facilities, personnel,
and funding.
By direction of the Commission.
Donald S. Clark,
Secretary.
[FR Doc. 99-15841 Filed 6-25-99; 8:45 am]
BILLING CODE 6750-01-M