November 20, 2017 / 11:00 PM / a year ago

Appeals court rejects debt collector's gambit of buying lawsuit against it

A federal appeals court has revived a proposed class action against Clark County Collection Service (CCCS), rebuffing the debt collector’s tactic of forcing the lawsuit to be sold at auction and then buying it at a sheriff’s sale.

In a decision on Friday, a unanimous three-judge panel of the 9th U.S. Circuit Court of Appeals said the debt collector’s “bold gambit” of buying the lawsuit filed against it is preempted by the U.S. Fair Debt Collection Practices Act, which gives borrowers to right to sue over abusive or misleading collection practices.

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