Posts tagged debt collector.
In Davidson v. Capital One Bank (USA), N.A., a case closely followed by the financial services industry and handled by Burr & Forman, LLP, the Eleventh Circuit held that an entity collecting a debt that was acquired after default, and which the entity now owns, is not a "debt collector" under the Fair Debt Collection Practices Act ("FDCPA") unless the principal purpose of the entity's business is the collection of debts or the entity regularly collects debts owed to others. In so holding, the Eleventh Circuit broke from the large majority of courts (including the Third, Seventh, and ...
Tags: Burr & Forman LLP, burr forman, Consumer Finance Litigation, Consumer Finance Litigation & Arbitration, Consumer Finance Litigation blog, Davidson v. Capital One Bank, debt collection, debt collector, eleventh circuit, fair debt collection practices act, fdcpa
In seeming contradiction to a line of recent federal court cases which had held that a debt collector's filing suit to collect a debt without evidence to prove its claim did not, in itself, amount to a violation of the FDCPA, a federal district judge in the Southern District of Alabama recently denied a debt collector's motion for judgment on the pleadings based on similar allegations. The court found that the plaintiff's allegations went beyond the allegations at issue in the other cases by alleging not only that the debt collector had no evidence at the time it filed suit, but that it had no ...