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Debt Collection 101: Episode 56 – Fair Debt Collection Practices Act Regulations: Are Debt Buyers Debt Collectors?

Are Debt Buyers Subject Fair Debt Collection Practices Act Regulations?

Though a previous case went against debt buyers falling under Fair Debt Collection Practices Act regulations a new case might turn that ruling around. In today’s episode, we’ll be discussing the Tepper vs. Amos Financial case and what it means for debt buyer regulations.

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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Emily Faracca

Emily is the content creator at Arbeit. She is an aspiring gardener, enjoys bike rides through her neighborhood, and is a big fan of a good cocktail. As much as she loves her hometown of Buffalo, N.Y., she absolutely loves to travel, and at the top of her bucket list is a trip to Sicily, where she still has living relatives.

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