March 10, 2020 / 1:42 PM / 24 days ago

Outsourcing collection won’t save debt purchasers from FDCPA liability – 9th Circ

Debt purchasers who outsource the collection process to a third party may still be liable for violating the Fair Debt Collection Practices Act, a divided federal appeals court held Monday.

The 2-1 panel of the 9th U.S. Circuit Court of Appeals overturned a lower court’s ruling in favor of DNF Associates LLC, which argued that debt purchasers – entities that buy unpaid accounts as investments but hire others to collect the amounts due – cannot be liable under the FDCPA because they have no contact with consumers.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/334wqPY

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