6th Circ. Says FDCPA Covers Servicers Of Defaulted Loans

Law360, New York (April 30, 2012, 5:50 PM EDT) -- Creditors and servicers that acquire defaulted loans can be considered debt collectors under federal debt collection laws, the Sixth Circuit said Monday, reviving a suit claiming a servicer for Deutsche Bank National Trust Inc. harassed a homeowner over an allegedly missed mortgage payment.

In a published majority opinion, the Sixth Circuit said Deutsche Bank and the servicer — units of Ocwen Financial Corp. — couldn’t define themselves out of the Fair Debt Collection Practices Act just because missed mortgage payment turned out to be erroneous and...
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