Google+
Home | Daily Dose | Supreme Court: Secondary Markets Not Subject to FDCPA Regulations
Print This Post Print This Post

Supreme Court: Secondary Markets Not Subject to FDCPA Regulations

A recent unanimous Supreme Court decision on Monday could have vast implications for the mortgage and loan industry, particularly the secondary market, unless the Fair Debt Collection Practices Act (FDCPA) is amended by Congress.

In the case Henson et al. v. Santander Consumer USA Inc., the petitioners claimed that Santander, who had bought a number of defaulted car loans from CitiFinancial Auto, had to abide by the rules and regulations set out by the FDCPA as debt collectors, not loan originators who were trying to collect a debt for themselves. The petitioners brought their case in front of the Supreme Court in an appeal of the 4th Circuit Court ruling that, ultimately, the Act defines debt collectors as a person or entity that “regularly seek[s] to collect debts ‘owed … to another.’” The court found that, since Santander was seeking to collect the debt they themselves were owed, they were not collecting on behalf of another person or entity.

The petitioners continued this same line of semantic argument in front of the Supreme Court. The word “owed” they said, is a past participle of the verb “to owe,” which would encompass the attempted collection of any debt previously owed to another.

The Supreme Court, however, thought this to be too much a stretch. They are of the opinion that Congress has, in the past, been very specific as to their definitions, and that while they may not have envisioned a time when the secondary market would be such a large industry, that still did not change the fact it was not within the purview of the court to extend the reach of the a law.

In the report, Justice Neil Gorsuch writes, “And while it is of course our job to apply faithfully the law Congress has written, it is never our job to rewrite a constitutionally valid statutory text under the banner of speculation about what Congress might have done had it faced a question that, one everyone’s account, it never faced.”

So what does this mean for the mortgage industry? Any entity, bank, or credit union that purchases a defaulted loan is not, under the letter of the law, considered a debt collector, and thereby not subject to the rules and regulations set in place by FDCPA. 

It is worth noting, though, that the petitioners believed Congress excluded loan originators from the Act because Congress believed they already had legal and economic incentives for good behavior. Given that many organizations that participate in the secondary market also have business dealings in originations, there is reason to believe the good behavior could continue without congressional intervention, although it may be necessary.

“Many wondered what impact U.S. Supreme Court Justice Neil Gorsuch would have on the court, and now we know: author of a 9-0 decision “limiting” the definition of a debt collector, meaning someone buying debt to collect it for themselves does not fall under the FDCPA,” said Michelle Gilbert, Managing Partner of Gilbert Garcia Group P.A. “Given the expansion of the reach of the FDCPA by courts and judges since its enactment in 1977, this decision should propel our industry to work harder to lobby Congress for changes in the law.”  

About Author: Joey Pizzolato

Profile photo of Joey Pizzolato
Joey Pizzolato is a graduate of Spalding University, where he holds a holds an MFA in Writing as well as DePaul University, where he received a B.A. in English. His fiction and nonfiction have been published in a variety of print and online journals and magazines.

230 comments

  1. Pingback: Google

  2. Pingback: Google

  3. Pingback: work from home jobs 2017

  4. Pingback: bubble packaging

  5. Pingback: http://www.magnetic.co.uk/Category/flexible-magnetic-tape

  6. Pingback: http://www.indigo.co

  7. Pingback: stair supplies

  8. Pingback: Ba Be Vietnam

  9. Pingback: 3M™ Bumpon™ Protectors - Dome Circle

  10. Pingback: pc games for windows xp

  11. Pingback: #mediumship

  12. Pingback: free download for windows 7

  13. Pingback: desserts

  14. Pingback: coffee beans Hawaii best gourmet kona

  15. Pingback: app download for pc

  16. Pingback: free download for pc windows

  17. Pingback: pc games for windows xp

  18. Pingback: app pc download for windows

  19. Pingback: pc games for windows xp

  20. Pingback: Mu Cang Chai Vietnam

  21. Pingback: Hermes bedlinings

  22. Pingback: usuwanie dpf

  23. Pingback: tibiabot

  24. Pingback: 동화세상에듀코

  25. Pingback: Florida Resident Database

  26. Pingback: fall fashion sale

  27. Pingback: fall fashion sale

  28. Pingback: cheap skin care devices

  29. Pingback: Band

  30. Pingback: celebrity news

  31. Pingback: Andrew Wright Maine Attorney

  32. Pingback: دوربین مدار بسته

  33. Pingback: how send email 1 million

  34. Pingback: best jobs for working at home

  35. Pingback: دوربین مدار بسته ارزان

  36. Pingback: G Spot Vibrator Review

  37. Pingback: best glass dildo

  38. Pingback: Best Female Sex Toy

  39. Pingback: footwear

  40. Pingback: sneakers

  41. Pingback: Beale taxi to Sacramento airport

  42. Pingback: 脱毛

  43. Pingback: gay dildo

  44. Pingback: 18inch double dong

  45. Pingback: دوربین مدار بسته بی سیم وایرلس

  46. Pingback: chennai news

  47. Pingback: Best Kona Coffee Online

  48. Pingback: adamandeve.com

  49. Pingback: dr. kat

  50. Pingback: clit tickler

  51. Pingback: Best Clit Sensitizer

  52. Pingback: دوربین مدار بسته بی سیم وایرلس

  53. Pingback: Adam and Eve Coupon Code

  54. Pingback: windows 10

  55. Pingback: استخدام نصاب دوربین مدار بسته

  56. Pingback: dual action stimulator

  57. Pingback: Homepage

  58. Pingback: دوربین مدار بسته هایک ویژن

  59. Pingback: buy pocket pussy

  60. Pingback: Tengae Warmer

  61. Pingback: How to Maintain Erection

  62. Pingback: Adameve.Com

  63. Pingback: how to

  64. Pingback: diy

  65. Pingback: buy vibrator online

  66. Pingback: black rabbit sex toy

  67. Pingback: rotating g spot vibrator

  68. Pingback: huge dildo review

  69. Pingback: تردمیل باشگاهی

  70. Pingback: دوچرخه ثابت

  71. Pingback: things to do Cape Town

  72. Pingback: fun88

  73. Pingback: Pet Products

  74. Pingback: adam and eve shop online

  75. Pingback: adam eve deal

  76. Pingback: taekwondo sparring gloves

  77. Pingback: Brazilian Hair

  78. Pingback: دوربین مدار بسته دی جی کالا

  79. Pingback: ارزانترین دوربین مدار بسته

  80. Pingback: porn movie

  81. Pingback: Milky Way Hair Wholesale

  82. Pingback: Hair Sisters Wholesale

  83. Pingback: Remy Hair Extensions Wholesale

  84. Pingback: Hair Extensions Wholesale

  85. Pingback: Peruvian Hair Wholesale

  86. Pingback: Milky Way Hair Wholesale

  87. Pingback: Malaysian Hair Wholesale

  88. Pingback: Virgin Hair Wholesale

  89. Pingback: شرکت دوربین مدار بسته

  90. Pingback: Indian Hair Wholesale

  91. Pingback: psicologo adicciones

  92. Pingback: iglesia

  93. Pingback: فروش دوربین مدار بسته

  94. Pingback: hack email account

  95. Pingback: ขายผ้าราคาถูก

  96. Pingback: بهترین دوربین دنده عقب

  97. Pingback: piala dunia 2018

  98. Pingback: قیمت دوربین آنالوگ

  99. Pingback: Anal Bead Toy

  100. Pingback: Ben Wa Balls

  101. Pingback: Bullet

  102. Pingback: suterh

  103. Pingback: Li-ion 18650 Battery

  104. Pingback: بازاریابی محتوا

  105. Pingback: Afghanistan blog

  106. Pingback: projection dome tent

  107. Pingback: Cloud Archiving

  108. Pingback: Vehicle maintenance Konstanz

  109. Pingback: دوربین مدار بسته مخفی

  110. Pingback: دوربین مدار بسته خودرو

  111. Pingback: Krav Maga classes in Irving

  112. Pingback: بازاریابی محتوا

  113. Pingback: silicone vibrator

  114. Pingback: Brand Management company

  115. Pingback: best kona coffee

  116. Pingback: lion coffee

  117. Pingback: بازاریابی محتوا

  118. Pingback: first time rabbit vibrator

  119. Pingback: 2017 acura nsx armytrix exhaust

  120. Pingback: big vibrator

  121. Pingback: kegel sex

  122. Pingback: how to give a blow job

  123. Pingback: top rated vibrators for women

  124. Pingback: adam and eve sex toy shop

  125. Pingback: Ahhh bullet of love

  126. Pingback: دوربین مدار بسته پویابین

  127. Pingback: finger vibrator

  128. Pingback: rabbit vibrator video

  129. Pingback: کفسابی

  130. Pingback: Buy Vigra

  131. Pingback: what to prepare for anal sex

  132. Pingback: هایک ویژن پارس ارتباط

  133. Pingback: quinny

  134. Pingback: خرید دوربین مداربسته

  135. Pingback: sex underwear

  136. Pingback: mdf

  137. Pingback: glass prostate toys

  138. Pingback: gay anal

  139. Pingback: suction dildo base

  140. Pingback: beginners dildo strap on

  141. Pingback: Airport Car Service Minneapolis

  142. Pingback: پک آماده دوربین مداربسته

  143. Pingback: waterproof power stud

  144. Pingback: how to use a bunny vibrator

  145. Pingback: دزدگیر اماکن

  146. Pingback: Limo Minneapolis

  147. Pingback: como mantener una buena ereccion

  148. Pingback: هوشمند سازی ساختمان

  149. Pingback: romantic gifts for her

  150. Pingback: digital marketing app

  151. Pingback: فروش دوربین مدار بسته

  152. Pingback: خرید اپل ایدی

  153. Pingback: cheap motels west palm beach

  154. Pingback: real life sex dolls

  155. Pingback: خرید اپل آیدی

  156. Pingback: thrusting sex toys for women

  157. Pingback: wild one vibrator

  158. Pingback: prepaid card

  159. Pingback: top female sex toys

  160. Pingback: oplata smieciowa warszawa

  161. Pingback: adam & eve adult toys

  162. Pingback: exotic adult toys

  163. Pingback: adam and eve online merchandise

  164. Pingback: adam & eve welcome kit

  165. Pingback: adam n eve lingerie

  166. Pingback: adam and eve shipping

  167. Pingback: the best sex toys for women

  168. Pingback: best rabbit vibrator

  169. Pingback: تولید محتوا

  170. Pingback: cheap sex toys

  171. Pingback: best sex toys on the market

  172. Pingback: Sripatum

  173. Pingback: best lube to use for sex

  174. Pingback: how to use g spot vibrator

  175. Pingback: ترمیم مو

  176. Pingback: which dildo to buy

  177. Pingback: RMUTT

  178. Pingback: طراحی سایت

  179. Pingback: هایک ویژن

  180. Pingback: Li-ion 18650 Battery

  181. Pingback: nipple toys

  182. Pingback: 50 shades of grey bondage set

  183. Pingback: no cost work from home

  184. Pingback: senegal nouveau gouvernement

  185. Pingback: SEO 2018

  186. Pingback: flexible vibrating anal beads

  187. Pingback: antislip tape

  188. Pingback: cyber skin dildo

  189. Pingback: new big dildo

  190. Pingback: pc games for windows 10

  191. Pingback: pc apps free download

  192. Pingback: pc games download for windows 7

  193. Pingback: خرید دوربین چشم ماهی

  194. Pingback: laptop app free download

  195. Pingback: free download for windows pc

  196. Pingback: free download for windows pc

  197. Pingback: Pinganillo

  198. Pingback: vibrating anal dildo

  199. Pingback: wand massager

  200. Pingback: wsmoney

  201. Pingback: sex movie

  202. Pingback: Landscape Architect in Ocean County NJ

  203. Pingback: best work from home jobs

  204. Pingback: Sell Bitcoin for Paypal

  205. Pingback: prostate massagers

  206. Pingback: strap on toys

  207. Pingback: double penetration vibrating dildo

  208. Pingback: mumbai police

  209. Pingback: best dildo

  210. Pingback: best kona coffee beans

  211. Pingback: vibrating massager

  212. Pingback: how to use lubricant

  213. Pingback: Orlando SEO services

  214. Pingback: prostate vibration therapy

  215. Pingback: womanizer toy

  216. Pingback: Broke phone

  217. Pingback: anal sex trainer kit

  218. Pingback: celebrity pussy molds

  219. Pingback: huge dildo

  220. Pingback: Big Boss Realistic Vibrator

  221. Pingback: خرید اپل آیدی

  222. Pingback: legit work from home companies

  223. Pingback: finger vibrator

  224. Pingback: doll adult

  225. Pingback: خرید vpn

  226. Pingback: خرید کریو

  227. Pingback: خرید کریو پر سرعت

  228. Pingback: anal sex

  229. Pingback: harmonica game

  230. Pingback: followers

Leave a Reply

Scroll To Top