Law Firm's Foreclosure Filing May Be FDCPA Breach: 6th Circ.

Law360, New York (June 26, 2012, 6:50 PM EDT) -- A law firm may have run afoul of the Fair Debt Collection Practices Act when it filed foreclosure proceedings against a homeowner even though its client hadn't yet taken ownership of the mortgage, the Sixth Circuit ruled Tuesday.

The implications of the decision are uncertain, but could affect a significant number of law firms, given the widespread practice of banks foreclosing in advance of formally taking title to properties.

The case before the Sixth Circuit involves Ohio law firm Lerner Sampson & Rothfuss, which in 2008...
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