Are Debt Buyers Subject to the FDCPA?

Key Points

  • The court case, Henson vs. Santander Consumer USA said the debt buyer was not subject to the FDCPA because they're not a collector.
  • However, there's another court case that came out recently. It was Tepper vs. Amos Financial, and basically, this said Amos Financial buys mortgages, and then they collect on them. That's what their primary business is. They are therefore a debt collector and subject to FDCPA regulations.
  • Moral of the story, If you're a debt buyer and all you do is collect on the debt that you buy I think it's safe to say that you're going to be subject to the FDCPA.

Looking for more educational information? Check out these Debt Collection 101 episodes covering CFPB Annual 2018 Report on The FDCPA and How To Take On Compliance Management.

 

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