3rd Circ. FDCPA Opinion A Rude Awakening For Debt Buyers

By Melanie Brody and Francis Doorley (March 15, 2019, 2:03 PM EDT) -- Purchasers of delinquent debt who slept more soundly after the U.S. Supreme Court's decision in Henson v. Santander Consumer USA Inc. had a rude awakening in February, when the U.S. Court of Appeals for the Third Circuit held that debt buyers may nonetheless be subject to the Fair Debt Collection Practices Act. In Barbato v. Greystone Alliance LLC, the Third Circuit sidestepped the Supreme Court's 2017 holding in Henson and found that a purchaser of defaulted debt qualified as a debt collector subject to the act....

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