Subrogation Claims Aren't 'Consumer Debts' Under Fla. Law

Law360, New York (February 10, 2016, 10:49 AM EST) -- Property and casualty insurers using collection agencies to collect subrogation claims in Florida can now cite a case to insulate them from consumer claims based on collection activities of their agencies. A Florida district court recently dismissed a class action against State Farm Mutual Automobile Insurance Co. and a collection agency engaged to collect subrogation claims for violations of the Florida Consumer Collection Practices Act (FCCPA).[1] The court found, as a matter of first impression in Florida, that insurance subrogation claims are not "consumer debts" as defined in, and are therefore not subject to, the FCCPA.[2]...

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