Case stemming from mortgage foreclosure debt creates ongoing argument for the high court with a final decision expected in June.
1/14/2019 13:00
The U.S. Supreme Court is split on the definition of a debt collector in a mortgage foreclosure case. Does property count as a debt? Are law firms required to comply with the Fair Debt Collection Practices Act?
Arbeit reviews highlights of the case Obduskey v. McCarthy & Holthus LLP in “Cases in Point: Another Identity Crisis.”
“Other cases in the past have said that a debt almost exclusively refers to money so property doesn’t necessarily fall under the jurisdiction of the FDCPA,” states Emily Faracca in the ACA International member company’s video series.
Among the issues in the case, Arbeit reports:
- The question of whether the law firm is a debt collector is one that could affect millions of Americans.
- One side argues that this method of foreclosure is unfair to borrowers, and they are entitled to more protection – such as the FDCPA.
- The law firm’s attorney argues that the FDCPA does not apply because the firm is not a “debt collector” by definition.
The U.S. Supreme Court is expected to issue a final decision in the case in June.
Related Content from ACA International:
BCFP Files Amicus Brief with U.S. Supreme Court Supporting Law Firm in FDCPA Case
Supreme Court to Decide Whether the FDCPA Applies to Non-Judicial Foreclosure Proceedings (Available to ACA International members only.)
Seventh Circuit Emailed Validation Notice Case Forces Tip-Off between ACA International and the BCFP
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