LadynRed Posted January 16, 2003 Report Share Posted January 16, 2003 Ok all, I know I've seen something on this somewhere, but need some opinions on interpretation of this FDCPA section. A person is dealing with a CA that has multiple accounts of theirs. The person making payments has *specifically* stated, in writing, exactly which accounts payments are to be applied to. The CA has ignored this and has decided to put the payments towards older accounts and NOT the ones specified in this person's letter, thereby activating these old accounts in their credit report (which is what the person was trying to avoid in the first place !).The CA claims that it can apply payments to any accounts that it has at THEIR discretion and refuses to heed the letter that was sent (yes, certified). The CA even quoted a section of the FDCPA.. the WRONG ONE, no less.. so shows where their brains are. Section 810 states:§ 810. Multiple debts [15 USC 1692h]"If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions. "The question that has arisen is, does a dispute have to exist for this to apply, or does the 'where applicable' piece stand on its own and payments are to be applied wehre the consumer directs ?? My personal interpretation is that the 'where applicable' part stands on its own and this CA is in violation. Any legal-minded input ?? I thought I saw an opinion letter or case on this, but will have to dig a lot to find it again..unless I dreamed it.. LOL. Link to comment Share on other sites More sharing options...
bw4444 Posted January 16, 2003 Report Share Posted January 16, 2003 I did a search and found nothing in case law or FTC opinions about this. The language looks plain to me. If the CA did not apply the payments as you directed, they are in violation. Link to comment Share on other sites More sharing options...
Jackal Posted January 16, 2003 Report Share Posted January 16, 2003 I think where applicable means, that if nothing is in dispute, the consumer directs where the payment goes. Link to comment Share on other sites More sharing options...
Anonymous Posted January 18, 2003 Report Share Posted January 18, 2003 The State of Calif. Dept. of Consumer Affairs put out an interesting legal guide in October 2002. It is a summary of the FDCPA. It also shows the Calif. statutes. Check out what it shows as the meaning of the section you quoted. You'll find the information on page 9, under Article 2.6, Unfair Collection Practices, #3 application of payment.www.dca.ca.gov/legal/dc_2.pdf Link to comment Share on other sites More sharing options...
LadynRed Posted January 20, 2003 Author Report Share Posted January 20, 2003 Thanks, I'll go get reading at that site I too think that if the consumer directs where payments are to go that the CA MUST comply. Link to comment Share on other sites More sharing options...
Recommended Posts