As the federal government as we know it is eliminated, it is good to see a positive pro-consumer opinion out of the Eleventh Circuit today.
In Booze v. Ocwen Loan Servicing, the Court of Appeals considered a question that had divided district courts–whether the FDCPA prohibits loan servicers from collecting “pay-to-pay” or “convenience” fees for the use of certain payment methods. In the case before it, Ocwen imposed a fee of $7.50 to $12 if borrowers wanted to pay online or via phone rather than by mail.
Rejecting Ocwen’s argument that it could not be held liable as a debt collector when it charged those fees, as it was instead “charging a separate fee for a
separate service of accepting expedited payment.” Rather, all that was relevant was that Ocwen “charged the amount while collecting or attempting to collect a debt.” Agreeing with the Fourth Circuit and a CFPB Advisory Opinion, the court held that a debt collector violates the FDCPA when they charge ‘any amount’ which is not expressly authorized by the agreement or permitted by law while collecting or attempting to collect a debt,” whether or not that amount is incidental to the debt. It further held that no statute affirmatively permitted the collection of such charges.