Debt Collection

U.S. Supreme Ct. limits FDCPA applicability in nonjudicial foreclosures

U.S. Supreme Ct. limits FDCPA applicability in nonjudicial foreclosures

The U.S. Supreme Court held that “those who engage in only nonjudicial foreclosure proceedings are not debt collectors within the meaning of the [FDCPA],” save for § 1692f(6), which prohibits certain conduct in “effect[ing] dispossession or disablement of property.”  On the other hand, the bulk of the FDPCA’s prohibitions, including § 1692g(b)’s verification requirement, did not apply to such foreclosure firm.

Md. App. Holds Debt Buyer Statutory Trust Needs Collection Agency License

Md. App. Holds Debt Buyer Statutory Trust Needs Collection Agency License

The Court of Special Appeals of Maryland held that a foreclosure proceeding was subject to state law collection agency requirements, and therefore that a statutory trust that owned a consumer mortgage loan was required to hold a collection agency license prior to proceeding with foreclosure.