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Consumer Protection:West VirginiaDebt CollectionProvisionsBy Angela L. Beblo, Esq. and Patrick R. Barry, Esq., Spilman Thomas & Battle, PLLCOverview Of The DebtCollection ProvisionContained Within TheWVCCPAThe WVCCPA was passed into law in1974 and is incredibly consumer-friendly.The WVCCPA applies to consumerloans, credit sales, and leases. 1 Itproscribes the maximum charges andfees that may be imposed on accounts. 2The collection provisions 3 apply to alldebt collection activity – whether doneby third-party collectors or creditors/issuers seeking to collect against theircustomer. 4 In connection with collectingon a debt, the WVCCPA prohibits:(1) threats and coercion 5 ; (2) oppressionand abuse 6 ; (3) unreasonable publication7 ; (4) fraudulent, deceptive, ormisleading representations 8 ; (5) unfairor unconscionable conduct 9 ; (6) postalviolations 10 ; and (7) deceptive or oppressivetelephone calls. 11 Each of thesesections contains a non-exhaustive listof activities that are prohibited underthe WVCCPA.Next quarter’s article will focus on ananalysis of the types of claims typicallyasserted under the WVCCPA. In the past several years, there hasbeen an increase in cases assertingclaims under the West Virginia ConsumerCredit and Protection Act, W. Va.Code § 46A-1-101, et seq. (“WVCCPA”)relating to illegal debt collection. Thesuccess of early suits has lead to an increasednumber of these lawsuits. Thus,West Virginia-based financial institutionsshould endeavor to learn about theintricacies of the WVCCPA and, if notalready in place, develop policies, procedures,and training programs to ensurethey are not violating the WVCCPAwhen they are collecting debts fromconsumers in West Virginia.1W. Va. Code § 46A-1-104 (“This chapter applies if aconsumer, who is a resident of this state, is induced to enterinto a consumer credit sale made pursuant to a revolvingcharge account, to enter into a revolving charge account, toenter into a consumer loan made pursuant to a revolvingloan account, or to enter into a consumer lease [ ], and thegoods, services or proceeds are delivered to the consumer inthis state, and payment on such account is to be made fromthis state.”); W. Va. Code § 46A-1-102 (including definitionsof the types of transactions subject to the Act).2Id. at 1-103, 2-115, 3-101 -109, 3-112 -117.3Over the next several quarters, weId. at 2-122 -129a.4will be providing information onId. at 2-122(c-d) (“debt collection” is defined as “any action,conduct or practice of soliciting claims for collection orthe WVCCPA and how it relates to in the collection of claims . . . alleged to be owed or due bya consumer” and “debt collector” is defined as “any personcollection efforts by financial institutions.We will begin with an overviewor organization engaging directly or indirectly in debt collection”;See Thomas v. Firestone Tire & Rubber Co., 164 W.Va. 763, 266 S.E.2d 905 (1980).of the WVCCPA, review each of the5W. Va. Code § 46A-2-124 (including, but not limited too,individual sections, and finish with (a) the use or threat of violence, (b) threat or accusation ofthreat that a person has committed a fraud or crime andrecommendations and considerations that would tend to disgrace the person accused, (c) falseaccusations of failure to pay, including information reportedfor the future. The WVCCPA canto a credit agency, and (d) threatening arrest or garnishmentwithout first explaining that judicial order must be in effect).significantly impact the way any financialinstitution does business, making language, (b) a caller’s failure to identify themselves and with6Id. at 2-125 (including (a) using obscene or profanethe intent to annoy, harass or threaten the person called, (c)an understanding of the WVCCPA’scausing a person to incur charges by concealing the purposeprovisions and how litigants utilize of the communication, and (d) causing a phone to ring ortalking to a person at inconvenient times with the intent tothe WVCCPA’s provisions whenannoy, harass, or threaten a person).asserting claims against financialinstitutions paramount. Debt Collection — continued on page 2318www.wvbankers.org