Analysis

Arguments In Debt Collection Case To Focus On Law's Reach

By Evan Weinberger (April 17, 2017, 5:23 PM EDT) -- The U.S. Supreme Court on Tuesday will hear oral arguments in a case that will determine what types of debt buyers are covered by federal debt collection statute and could potentially exempt some of the country's largest banks if the court limits that law's reach.

The arguments in Henson v. Santander Consumer USA Inc. are expected to explore whether banks or consumer finance firms that purchase defaulted debt and then collect from consumers on the debt they then own are covered by the consumer protections listed in the Fair Debt Collections Practices Act.

A ruling in favor of those firms, which...

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