Clinton Provides Relief for Debtor Collectors


On September 30, 1996, President Clinton signed into law the first relief for debt collectors under the Fair Debt Collection Practices Act in nearly 20 years.

The amendment, which takes effect on January 1, address the requirements for giving the so-called "mini miranda" warning to debtors. Under the new provision, that notice need only be given on the initial communication (oral or written). Any subsequent communication must simply disclose that is from a debt collector. Also, the "mini miranda" and "debt collector" notice does not apply to a formal pleading made in connection with a legal action.


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