Supreme Court Clarifies Who is a Debt Collector
A dust-up between a mortgagor and his mortgage loan servicer (who was assigned the debt) and the law firm that represented the servicer included allegations the defendants violated the Fair Debt Collection Practices Act (FDCPA) and committed defamation and extreme and outrageous conduct under Colorado law. The lower courts sided with the defendants. The Supreme Court affirmed holding a business such as a law firm engaged in no more than the type of security-interest enforcement known as nonjudicial foreclosure proceedings, is not a “debt collector” subject to the main coverage of the FDCPA. This decision abrogated prior federal case law.