The appeals panel joins the 3rd Circuit’s opinion on the issue.
3/10/2020 14:00
The U.S. Court of Appeals for the 9th Circuit reversed a district court’s dismissal of a ruling under the Fair Debt Collection Practices Act March 9, holding “that a business that bought and profited from consumer debts, but outsourced direct collection activities, qualified as a ‘debt collector,’” according to the court summary.
In McAdory v. M.N.S. & Assocs., LLC, No. 18-35923, — F.3d —-2020 WL 1128813, (9th Cir. Mar. 9, 2020), the 9th Circuit found that an entity that otherwise meets the “principal purpose” definition of debt collector under 15 U.S.C. § 1692(a)(6) cannot escape liability under the FDCPA by hiring a third party to collect the debt.
This joins the 3rd Circuit’s opinion on this issue as articulated Barbato v. Greystone All., LLC, 916 F.3d 260, 261 (3d Cir. 2019).
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