On Aug. 7, the U.S. Court of Appeals for the Third Circuit issued an opinion in the case of Tepper v. Amos Financial (Case No. 17-2851) which has sent, and should send, shock waves to creditors and institutions that not only regularly purchase debt, but also those who can be classified as “debt collectors” under the Federal Fair Debt Collection Practices Act (FDCPA) 15. U.S.C. Section 1692.
In the somewhat recent U.S. Supreme Court case of Henson v. Santander Consumer USA, (137 S. Ct 1718 (2017)), Justice Neil Gorsuch, in his first opinion, left open the meaning of the definition of a “debt collector” under the FDCPA in holding that a debt purchaser is subject to the FDCPA if its principal business is the collection of debts. In the Henson case, the question was raised whether a bank which purchased a defaulted FDIC insured loan would be subject to the FDCPA, and the holding by the Supreme Court was that a person or entity that purchases a defaulted debt is not a “debt collector” and not subject to the FDCPA.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.
For questions call 1-877-256-2472 or contact us at [email protected]