Prior to the 1986 amendment to the Act, the Commission issued a statement clarifying its enforcement policy regarding traditional debt collection agencies which happen to be owned or operated by an attorney. The Commission also published a proposed version of a staff commentary on the Act. The commentary summarizes over 1,000 pages of informal staff interpretations that Commission staff had issued since the Act went into effect in 1978. The Federal Trade Commission does not have jurisdiction over banking institutions. The Commission staff selects matters for further investigation when complaints from consumers, state and local agencies, or from industry members suggest a pattern of law violations not suited to voluntary compliance efforts.
Case selection is based primarily on the extent of possible consumer injury.
In appropriate instances we initiate non-public formal investigations of debt collectors to determine whether they are or have engaged in serious violations of the Act. When further investigation produces evidence confirming such violations,.the staff will attempt to negotiate a settlement of the case prior to recommending the issuance of a complaint, provided there is a likelihood that appropriate civil penalties and other affirmative relief can be obtained. When a negotiated settlement that effectively addresses the violations at issue cannot be reached, however, the Commission, through the Department of Justice, may bring suit to enforce the law. In light of the foregoing and in the absence of sufficient facts to make a determination, the Commission's staff is unable to formulate a response to the latter part of this question. Question J See court decisions cited in response to Question E above.