The United States Supreme Court is taking a case that will answer this question. What it means to us, if the United States Supreme Court rules against the consumers appealing the lower courts rulings, a debt collector would be exempt from the FDCPA, merely by paying to buy the account, and could do virtually anything to collect on the debt. The case is Ricky Henson et al v. Santander Consumer USA, Inc et al, in the Supreme Court of the United States, No. 16-349. Obviously, the collection industry is excited about the possibility of ethicless collection being "pennies on the dollar" away. The most infuriating thing about this case, is that Santander admits to being a collection agency for the accounts before they bought them, the lower courts rulings are that the second they bought the accounts, they were no longer a collection agency. https://www.google.com/url?sa=t&source=web&rct=j&url=/amp/mobile.reuters.com/article/amp/idUSKBN14X2DY&ved=0ahUKEwicsJHEzMvRAhWHbSYKHYO8DdAQFggoMAA&usg=AFQjCNGIz9XJ2pEzZBUI_3rQYtIzIwqFEw&sig2=uhj2U80N5etteIBIEr0pVw
Terrible. Debt buyers and debt collectors should have to play by the same rules. Fingers crossed the US Supreme Court does the right thing here.
Especially since the debt buyer was a collector in the accounts in question before it bought the account; it doesn't make sense for the debt collector to essentially buy itself out of complying with the law. One of the reasons that I almost always include "The false and misleading representation that the transfer or sale subjects the consumer to actions prohibited by the act" into the suit, that way their defense, would actually be a violation, and it makes it clearer to the court that the law wasn't intended to end when the account is transferred or sold...
I was able to find some more information on this ongoing case... https://casetext.com/case/henson-v-santander-consumer-usa#! Maryland Defense Counsel, Inc.: Promoting Justice. Providing Solutions http://www.ca4.uscourts.gov/Opinions/Published/151187.P.pdf HENSON v. SANTANDER CONSUMER USA, INC. | Civil Action No. RDB-12-3519. | Leagle.com. Henson v. Santander Consumer USA, Inc. - SCOTUSblog
A debt buyer is not quite the same as a collection agency. Obligation purchasers buy old obligations from unique leasers, similar to banks, charge card organizations, and vehicle advance moneylenders. In contrast to an assortment organization, which just attempts to gather as a support of the lender, the obligation purchaser really claims the obligation.
