Your Rights as a Debtor

• Author: Daniel A Edelman
• Profession: Lawyer
• Pages: 47-55

47

Your Rights as a Debtor

CHAPTER

13

According to a collections industry source, 35 percent of U.S. consumers with credit have at least one

account in collections (Credit & Collection News, June 17, 2015).

The collection of consumer debts is regulated by the federal Fair Debt Collection Practices Act

( FDCPA) (15 U.S.C. §1692 et seq.). The FDCPA generally applies to third-party debt collectors, which

include the following:

•Collection agencies

•Collection lawyers—Lawyers were originally excluded from the definition of debt collector, but

in 1986, Congress removed the attorney exemption, so lawyers are covered if they “regularly”

collect consumer debts (Heintz v. Jenkins, 514 U.S. 291 (1995)). The “FDCPA does apply to

a lawyer ... with a general practice including a minor but regular practice in debt collection”

(Crossley v. Lieberman, 90 B.R. 682, 694 (E.D.Pa. 1988), aff’d, 868 F.2d 566 (3d Cir. 1989)).

•Debt buyers

•Mortgage servicers that become involved with debts after they are in default (Oppong v. First

Union Mortgage Corp., 407 F.Supp.2d 658, 662 (E.D.Pa. 2005), aff’d in pertinent part, vacated in

part, 215 Fed.Appx. 114 (3d Cir. 2007))

•Foreclosure lawyers, at least if they attempt to collect money or seek personal judgments

( Kaltenbach v. Richards, 464 F.3d 524 (5th Cir. 2006); Gburek v. Litton Loan Servicing LP, 614

F.3d 380 (7th Cir. 2010); Glazer v. Chase Home Finance, LLC, 704 F.3d 453 (6th Cir.2013);

Wallace v. Washington Mut. Bank, F.A., 683 F.3d 323 (6th Cir. 2012); Reese v. Ellis, Painter,

Ratterree & Adams LLP, 678 F.3d 1211, 1217–18 (11th Cir. 2012); Wilson v. Draper &

Goldberg, P.L.L.C., 443 F.3d 373, 376 (4th Cir. 2006); Brown v. Morris, No. 04-60526, 243 Fed.

Appx. 31; 2007 U.S. App. LEXIS 15396 (5th Cir., June 28, 2007) (same); Piper v. Portnoff Law

Assocs., Ltd., 396 F.3d 227, 233-36 (3d Cir. 2005))

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