Gorsuch Delivers No Surprise in First Opinion: FDCPA Does Not Apply to Debt Buyers
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Gorsuch Delivers No Surprise in First Opinion: FDCPA Does Not Apply to Debt Buyers

Targeting the burgeoning industry of large entities that purchase the debts they collect, consumers sued a consumer finance company and its agents alleging they violated the Fair Debt Collection Practices Act (FDCPA) by engaging in prohibited collection practices when collecting on their automobile loans, originated by a third party and then, after default, sold to the company. The recently seated Justice Gorsuch wrote for a unanimous court that individuals and entities who regularly purchase debts originated by someone else and then seek to collect those debts for their own account are not “debt collectors” subject to the FDCPA, abrogating prior case law. The opinion relied on the express terms of the statute that focuses on third party collection agents working for a debt owner, not a debt owner seeking to collect debts on its own behalf.

Henson v Santander Consumer USA Inc