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4TH CIRCUIT FDCPA RULING BEING REVIEWED BY the SCOTUS


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In Henson v. Santander Consumer USA, Inc., the Fourth Circuit Court of Appeals ruled that although the Henson's debt was in default when it was purchased by Santander, the defendant was not a "debt collector" as defined by the Fair Debt Collection Practices Act (1692a(6)).

This could be an important ruling for consumers.

Link to the 4th Circuit's ruling:

https://scholar.google.com/scholar_case?case=4281565282382559552&q="Henson+v.+Santander"+&hl=en&as_sdt=6,41

Other links:

http://www.scotusblog.com/case-files/cases/henson-v-santander-consumer-usa-inc/

Thoughts? 

 

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On 4/20/2017 at 5:01 PM, BV80 said:

In Henson v. Santander Consumer USA, Inc., the Fourth Circuit Court of Appeals ruled that although the Henson's debt was in default when it was purchased by Santander, the defendant was not a "debt collector" as defined by the Fair Debt Collection Practices Act (1692a(6)).

This could be an important ruling for consumers.

Link to the 4th Circuit's ruling:

https://scholar.google.com/scholar_case?case=4281565282382559552&q="Henson+v.+Santander"+&hl=en&as_sdt=6,41

Other links:

http://www.scotusblog.com/case-files/cases/henson-v-santander-consumer-usa-inc/

Thoughts? 

 

You can listen to oral arguments here:

 16-349. Henson v. Santander Consumer USA Inc.

Very bright and cunning lawyers. It all turns on the meaning of words.

The big banks are scared to be regulated by FDCPA:

http://www.nationallawjournal.com/id=1202783967956/Banks-Finance-Companies-Fret-Over-Sweep-of-Debt-Collection-Law?mcode=1202615432728&curindex=0&slreturn=20170322171309

Banks, retailers, finance companies and other entities that buy and sell loans are sounding alarms about a U.S. Supreme Court case that could bring them under the regulatory eye of a 1977 law prohibiting certain debt collection practices.

The U.S. Chamber of Commerce and banking industry trade associations warn that applying the Fair Debt Collection Practices Act to the exploding debt-buying industry could sweep many banks and consumer finance companies into the act as well, despite Congress’ intent to exclude them.

If that happens, Morrison & Foerster’s Joseph Palmore, the U.S. Chamber’s amicus counsel, predicted the cost of credit will increase and the secondary market in loans will be chilled. There also would be a “boon to the ‘cottage industry’ of litigation that has arisen" out of the FDCPA, said Sullivan & Cromwell’s Matthew Schwartz, amicus counsel to the Clearing House Association, American Bankers Association and Consumer Bankers Association.

 

 

 

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17 hours ago, debtzapper said:

If that happens, Morrison & Foerster’s Joseph Palmore, the U.S. Chamber’s amicus counsel, predicted the cost of credit will increase and the secondary market in loans will be chilled. There also would be a “boon to the ‘cottage industry’ of litigation that has arisen" out of the FDCPA, said Sullivan & Cromwell’s Matthew Schwartz, amicus counsel to the Clearing House Association, American Bankers Association and Consumer Bankers Association.

LOL!  Such a tell-tale quote from someone with too much skin in the game to remain objective.

"I predict a lot of bad things that sound horrible to John and Jane Doe who are clueless but listen to quotes in the news form people like me who want them to be afraid of this law instead of using it to protect themselves from the abusive industry as intended".

The "secondary market in loans will be chilled" sounds like a bad thing.  Unless you word it more properly as "the debt collection industry would have to be held to the consumer protection laws".  And the nonsense about cost of credit will increase - it might, but that would only be because banks would decide to offset lawsuits by sticking it to their customers instead of actually just simply following the laws.

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