The definition of “debt collector” has become a central issue as Pepper Hamilton faces a federal lawsuit alleging that a partner used unfair debt collection practices in payment demands to his tenants that were printed on firm letterhead.

In a Jan. 10 motion to dismiss the complaint, Pepper Hamilton contended that, as a law firm, it is not a debt collector under federal law, and neither is partner M. Kelly Tillery. Lawyers for Donald and Holly Adams countered on Tuesday that the plaintiffs were “the least sophisticated debtors,” and therefore reasonably believed that Pepper Hamilton was acting as a debt collector for Tillery.

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