In his first written opinion, Justice Neil Gorsuch wrote in Henson v. Santander Consumer USA, Inc. that the Fair Debt Collection Practices Act does not apply to debt buyers like Santander under one of the definitions for “debt collector.” This decision has potentially broad ramifications for financial institutions that purchase debts for collection as part of their business. At the same time, the decision leaves the door open to potential future disputes under the remaining definitions under the FDCPA.
On May 15, 2017, the Supreme Court issued a 5-3 decision holding that it is not a violation of the Fair Debt Collection Practices Act to file a proof of claim in bankruptcy related to a debt for which the statute of limitations has expired, resolving a previous circuit court split regarding the issue.
In Zambrana v. Pressler & Pessler LLP, the Southern District Court of New York stayed a putative class action against various creditors for alleged violations of the Fair Debt Collection Practices Act (FDCPA), referring the matter to arbitration.
The Consumer Financial Protection Bureau (“CFPB”) revealed yesterday its proposal to overhaul debt collection industry practices through tighter regulations, including limits on the frequency of consumer contact and ensuring companies are collecting the correct amounts owed and from the right persons.
Third Circuit: The Repossession of Your Car as Collateral on a Usurious Loan is Not an FDCPA Violation
The U.S. Court of Appeals for the Third Circuit recently held that a repossession company did not violate the Fair Debt Collection Practices Act (“FDCPA”) when it repossessed the defaulting debtor’s car, even though the loan may have been usurious.
Can Credit Card Debt Collectors Continue to Charge Interest and Late Charges After Charging-Off the Debt?
A federal district court in Oklahoma recently dismissed a putative class action asserting that defendants’ credit card debt collection activities violated the Fair Debt Collection Practices Act (“FDCPA”).
On December 11, 2015, the U.S. Supreme Court granted certiorari to hear a dispute concerning allegations of deceptive debt collection by lawyers.
Damned If You Do: Second Circuit Rules That Language Included In RESPA-Required Notice Begets FDCPA Violation
The Fair Debt Collection Practices Act (“FDCPA”) provides that, if a “debt collector” makes an “initial communication with a consumer in connection with the collection of any debt,” the debt collector must provide the consumer with certain information, such as the amount of the debt, the name of the creditor, and the consumer’s right to dispute the debt. See 15 U.S.C. § 1692g(a). However, the statute does not elaborate on the meaning of the phrase “in connection with the collection of any debt.” The U.S. Court of Appeals for the Second Circuit recently flagged a Section 1692g(a) tripwire.