Third Circuit: A business whose reason for existence is obtaining payment on debts is a debt collector under the FDCPA

Stephen J. Shapiro published a client alert, “Third Circuit: A business whose reason for existence is obtaining payment on debts is a debt collector under the FDCPA.” The alert concludes that debt buyers would be well-advised to assume that they will be subject to the provisions of the FDCPA, at least in courts in the Third Circuit. The alert further states:

“The purchase and sale of debt was not a common practice at the time Congress enacted the Fair Debt Collection Practices Act (‘FDCPA’) and the Third Circuit has observed that that ‘the proliferation of debt buying [has led to] questions about the boundaries of the statute’s definitions.’ One such question arose in the case Barbato v. Greystone Alliance, LLC, in which the Third Circuit held that the boundaries of the FDCPA encompass businesses that purchase debt.”

Click here to read the full client alert.