High Court To Weigh Costs Trigger In Debt Collection Cases

Law360, New York (May 29, 2012, 7:42 PM EDT) -- The U.S. Supreme Court on Tuesday agreed to consider whether the Fair Debt Collection Practices Act allows General Revenue Corp. and similar prevailing defendants to recover costs if a suit isn't brought in bad faith and for harassment purposes.

The Tenth Circuit affirmed in December that GRC had not violated the FDCPA in sending a fax to student loan debtor Olivea Marx's employer. The appeals court also upheld in a 2-1 decision the lower court's award of costs to the collection agency, based on the statute's...
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