Monday, January 21, 2013

Federal Appeals Court: Mortgage Foreclosure = Debt Collection Under Fair Debt Collection Practices Act

From Law360:

  • The Sixth Circuit on Monday said mortgage foreclosure actions are debt collections under the Fair Debt Collection Practices Act, reversing the dismissal of a property owner's claims against an Ohio law firm that attempted to foreclose his property on behalf of a JPMorgan Chase & Co. unit.
For more, see Foreclosures Are Debt Collections Under FDCPA: 6th Circ.

For the court ruling, see Lawrence Glazer v. Chase Home Finance, LLC, No. 10-3416 (6th Cir. January 14, 2013).

See also Credit Slips: Is enforcement of a security interest (e.g. a foreclosure) "debt collection" under the FDCPA?:
  • Yes, says the Sixth Circuit, in Glazer v. Chase Home Finance, issued yesterday. This is good news for FDCPA plaintiffs, who have had to contend for years with a district court consensus that the enforcement of a security interest is not subject to most of the provisions of the Act.

    An odd type of split is developing on this issue: most district courts are getting it wrong, whereas most courts of appeals are getting it right. Usually, one expects the districts to follow the circuits, but the narrow view of debt collection continues to prevail at the district court level. (The circuits also have the better reading of the statute, in my view, which makes it all the more strange that the split seems to have persisted for so many years.)

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