On June 12, 2017, the United States Supreme Court held that a buyer of defaulted consumer debt was not subject to the Fair Debt Collection Practices Act (“FDCPA”). The question of whether such debt buyers fit within the FDCPA’s definition of “debt collector” has long been a subject of contention. While this result will not shield debt buyers entirely from the FDCPA’s purview, it does provide additional defenses against FDCPA liability and has broad potential implications for other consumer protection actions.
In Henson v. Santander Consumer USA, the petitioner had defaulted on a car loan owed to CitiFinancial Auto, which then sold the debt to Santander, which attempted to collect on the debt. The petitioner alleged that Santander’s collection methods violated the FDCPA. Continue Reading Debt Buyers Get Some FDCPA Relief from Supreme Court: Case Offers Insights But Leaves Some Questions Unanswered