The Federal Trade Commission has issued an advisory opinion stating that in a foreclosure context, debt collectors do notcommit a per se violation of the Fair Debt Collection Practices Act (FDCPA) when they discuss settlement options with the consumer. The Commission believes that it is in the public interest for consumers who may be subject to foreclosure to receive truthful, non-misleading information about settlement options, especially in light of the recent prevalence of mortgage borrowers who are delinquent or in foreclosure.
Debt collectors’ interests are more often than not adverse to those of the consumers from whom they seek payment. Obviously, when discussing an issue as important as potential foreclosure, you want to be sure that what you’ve said will not be used against you in any subsequent foreclosure proceedings. If at all in doubt, do not speak with debt collectors until you have first received advice from an attorney specializing in collection matters.