The Mortgage Lender Implode-O-Meter News Pick-ups: United States: Sixth Circuit Holds That Mortgage Foreclosure And Foreclosure Lawyers Are Subject To The FDCPA

The Sixth Circuit's ruling is significant because, among other things, the prospect of FDCPA liability may discourage law firms from engaging in mortgage foreclosure activity, requiring banks and other mortgage servicers to move some of these collection activities in-house. The potential consequences of the Sixth Circuit decision may be particularly acute when considered in conjunction with a recent decision in the Ninth Circuit, which makes clear that lawyers and other principals of firms operating as debt collectors for banks might be held personally liable under the FDCPA for the actions of their firms

Relevant:

United States: Sixth Circuit Holds That Mortgage Foreclosure And Foreclosure Lawyers Are Subject To The FDCPA