Banks, Finance Companies Fret Over Sweep of Debt Collection Law
Banks, retailers, finance companies and other entities that buy and sell loans are sounding alarms about a U.S. Supreme Court case that could bring them under the regulatory eye of a 1977 law that prohibits certain debt collection practices.
April 18, 2017 at 03:49 PM
13 minute read
Banks, retailers, finance companies and other entities that buy and sell loans are sounding alarms about a U.S. Supreme Court case that could bring them under the regulatory eye of a 1977 law prohibiting certain debt collection practices.
The U.S. Chamber of Commerce and banking industry trade associations warn that applying the Fair Debt Collection Practices Act to the exploding debt-buying industry could sweep many banks and consumer finance companies into the act as well, despite Congress' intent to exclude them.
If that happens, Morrison & Foerster's Joseph Palmore, the U.S. Chamber's amicus counsel, predicted the cost of credit will increase and the secondary market in loans will be chilled. There also would be a “boon to the 'cottage industry' of litigation that has arisen” out of the FDCPA, said Sullivan & Cromwell's Matthew Schwartz, amicus counsel to the Clearing House Association, American Bankers Association and Consumer Bankers Association.
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Trending Stories
- 1Wine, Dine and Grind (Through the Weekend): Summer Associates Thirst For Experience in 'Real Matters'
- 2The Law Firm Disrupted: For Big Law Names, Shorter is Sweeter
- 3The 'Biden Effect' on Senior Attorneys: Should I Stay or Should I Go?
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5'You Are Not Alone': 120 Sex Assault Victims Plan to Sue Sean 'Diddy' Combs
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250