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Neo9

Are Auto Lease Payments a Consumer Debt?

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Does an automobile lease payment qualify as a consumer debt?  I'm referring to the payments due on the vehicle lease itself, which technically constitutes a rental.

I am not referring to any actions taken to repossess a leased vehicle, but rather, just telephone collection efforts by an original finance company or a third-party collector soliciting payments on said auto lease.

I do understand that vehicle *purchases* constitute a secured debt.  I can't find much information upon cursory search in this forum or via Google as to whether auto lease payments qualify as a consumer debt and fall under the protections afforded by FDCPA and state collection laws when applied to collection efforts made to solicit payment on the contract *without* involving repossession efforts.

Sincerely,
Neo9  

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1 hour ago, Neo9 said:

Does an automobile lease payment qualify as a consumer debt?

YES.

1 hour ago, Neo9 said:

I can't find much information upon cursory search in this forum or via Google as to whether auto lease payments qualify as a consumer debt and fall under the protections afforded by FDCPA and state collection laws when applied to collection efforts made to solicit payment on the contract *without* involving repossession efforts.

The FDCPA does not apply to an original creditor trying to collect on the debt.

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Car payments under a lease are a consumer debt.

If a auto finance company is pursuing it's own collections, the FDCPA will not apply but a state law may apply.

If the auto finance company uses a servicer (which is not unusual) then the FDCPA does apply to that servicer. A servicer is essentially a third-party that is hired to collect payments, apply payments, deal with customer inquiries. Think how NAVIENT is the student loan servicer for the federal government. 

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10 hours ago, usctrojanalum said:

Car payments under a lease are a consumer debt.

 If a auto finance company is pursuing it's own collections, the FDCPA will not apply but a state law may apply.

If the auto finance company uses a servicer (which is not unusual) then the FDCPA does apply to that servicer. A servicer is essentially a third-party that is hired to collect payments, apply payments, deal with customer inquiries. Think how NAVIENT is the student loan servicer for the federal government. 

Understood.  Thanks for sharing your insight on this.  

I've noticed a trend recently where, although there isn't a servicer (such as Navient or as is common with other student loans), some companies will utilize third-parties to engage in collection efforts when theirs have gone unacknowledged, while the account is still in-house with the OC.  I imagine these third-parties also fall under FDCPA jurisdiction? 

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Those are what we call debt collectors (as opposed to Junk Debt Buyers). They are contracted by the Original Creditor to collect on the account and they make their money by getting a percentage of the amount collected. Since they are third party collectors under the law, they are covered by the FDCPA.

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Not also that the FDCPA does not apply to original creditors BUT in California, the Rosenthal Act does apply to original creditors so in California, you might have a state cause of action.

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