Category Archives: Debt Collection

A Few More Thoughts On Henson v. Santander

by Jeff Sovern As we reported a couple weeks ago, the Supreme Court ruled in Henson v. Santander that debt buyers are not automatically debt collectors under the Fair Debt Collection Practices Act.   However, debt buyers which have debt collection as the principal purpose of their business should still qualify as debt collectors under the statute (the […]

Articles Praising/Explaining Debt Collection

by Jeff Sovern Our consumer law casebook strives to present a balanced approach, so I am always on the lookout for writings that present debt collectors favorably. In that regard, The Economist recently published In praise of America’s third-party debt collectors.  Here's an excerpt: A provocative new paper by Julia Fonseca, of Princeton University, and Katherine Strair and Basit Zafar, […]

Am. Banker Reports CFPB Expected to Issue Third Party Debt Collection Rule by Early 2018

Here. It might even happen by the end of this year. Excerpt: "Creditors should be responsible since they are our customers," said Dong Hong, vice president and senior counsel at the Consumer Bankers Association. "For the most part, we're fine with the disclosure regime the CFPB is creating.

David Dayen’s Take on Henson v. Santander

Here in The American Prospect.  Excerpt: [The case] gave some of the worst bottom-feeders in the economy a free pass to break the law. * * * “It's almost a road map to me on how you can avoid the FDCPA,” says noted consumer bankruptcy attorney Max Gardner, who runs a boot camp for lawyers […]

SCOTUS Rules Unanimously: Debt Buyers Not Debt Collectors Under FDCPA

by Jeff Sovern The decision in Henson v. Santander is here.  A debt buyer could still qualify as a debt collector under the FDCPA if debt collection is the "principal purpose" of its business, under 1692a(6), but if collections is not the principal purpose of its business, as is true of Santander, it will not be […]

Law360’s Evan Weinberger: CFPB Could Avoid Fight With New Debt Collection Plan

Here.  We reported on the plan to separate debt collection regulation into two rules on Thursday. Weinberger reports on speculation on the Bureau's motivation in proceeding in that fashion: But doing the less controversial update of debt collection communications and disclosures first could also potentially allow the CFPB to avoid any rule getting invalidated by […]

CFPB Alters Plan for Debt Collection Regs

by Jeff Sovern Last summer, the CFPB issued a document indicating its tentative plan for third-party debt collector regulation, and saying that it was going to move forward on first-party debt collectors separately. Today, CFPB Director Richard Cordray gave a speech saying that in light of feedback the Bureau had received, it has: now decided to […]