CEB Prac. Guide § 2A.18 -- Debts to which the FDCPA Apply -- Federal -- Examples

On July 15, the DFPI issued proposed regulations on the scope of  debt collection licensure required by the DCLA.  The text of the proposed regulations can be found  here:  PRO-05-21-Text-DCLA-Invitation-for-Comments.-7.14.22 There are a number of significant proposed regulations for licensees, applications, or potential licensees. First, the DFPI's proposed regulations would confirm that W-2 or true employees are not required to… Read More

In Bbbb Bonding Corp. v. Caldwell, No. A162453, 2021 Cal. App. LEXIS 1100, at *2-4 (Ct. App. Dec. 29, 2021), the Court of Appeal found that bail bond premium financing agreements are "consumer credit contracts". This appeal requires us to interpret a long-standing consumer protection statute in a novel context: whether the requirement under Civil Code section 1799.91 that notice… Read More

The CFPB issued an interim final rule that is effective May 3, 2021 to address certain debt collector conduct associated with an eviction moratorium issued by the CDC. The rule provides that debt collectors, as defined in the FDCPA, are required to provide written notice to certain consumers of their protections under the CDC Order’s eviction moratorium. Also, debt collectors… Read More

In Lynaugh v. Vincent, No. CV-19-04643-PHX-DJH, 2020 U.S. Dist. LEXIS 23246 (D. Ariz. Feb. 10, 2020), Judge Humetewa found that attorneys’ fees awarded in an underlying consumer litigation was not a debt incurred on a consensual basis and, accordingly, did not arise from a “transaction” under the FDCPA. The Court will first examine Defendants' contention that the attorneys' fees judgment… Read More

In Jordan Kohler, individually and on behalf of all other similarly situated, Plaintiff, v. Greystar Real Estate Partners, LLC; The Loft Apartments Acquisition, LLC, Defendants., 2017 WL 5973338, at *3–4 (S.D.Cal., 2017), Judge Houston dismissed a Rosenthal Act claim that arose out of collection on a residential lease. Defendant Greystar argues that the Rosenthal Act does not apply to late… Read More

In Franklin v. Parking Revenue Recovery Services, Inc., 2016 WL 4248035 (7th Cir. 2016), the Court of Appeals for the Seventh Circuit held that a contract was formed between the City parking lot operators and parkers, resulting in a "transaction" that formed a debt under the FDCPA. Two parts of the definition need further explanation. First, although the statute does not… Read More

In Parham v. Seattle Service Bureau, Inc., 2016 WL 4039665, at *3 (11th Cir. 2016), the Court of Appeals found debt collection in connection with insurance subrogation claims was exempt from the FDCPA. Our decision in Hawthorne squarely controls the outcome in this case. Like Andrew Parham's sister, the plaintiff in Hawthorne was involved in an automobile accident, allegedly resulting from the… Read More

In Harris v. Liberty Community Management, Inc. --- F.3d ----, 2012 WL 6604518 (11th Cir 2012), the Court of Appeals for the Eleventh Circuit found that a homeowners' association's management company was exempt from the FDCPA, so long as its collection of association dues was not central to its fiduciary obligations to the HOA. The Fair Debt Collection Practices Act (… Read More

In Hylton v. Anytime Towing, 2012 WL 5498887 (S.D.Cal. 2012), Judge Curiel found that city towing fees were not ‘debts’ under the FDCPA or Rosenthal Act. Courts have held that a motor vehicle impoundment and towing fees arising out of action authorized by state law enforcement agency do not constitute a “debt” within the meaning of Fair Debt Collection Practices… Read More

In Haddad v. Alexander, Zelmanski, Danner & Fioritto, PLLC, --- F.3d ----, 2012 WL 5188812 (6th Cir. 2012), the Court of Appeals for the Sixth Circuit held that condominium association fees qualify as a “debt” subject to the FDCPA. Because the statute's definition of a “debt” focuses on the transaction creating the obligation to pay, the obligation to pay is… Read More

In Mazzaferro v. Stanaland, 2011 WL 5444323 (N.D.Cal. 2011), Judge Illston held that an attorney fee award in an underlying case that was reduced to judgment and abstract was not a ‘consumer debt’ under the FDCPA because the judgment did not arise out of a ‘consensual’ transaction.  Judge Illston explained:   Defendant contends that plaintiffs have failed to state a… Read More

In Leasure v. Willmark Communities, Inc., 2011 WL 2267598 (S.D.Cal. 2011), Judge Lorenz found no controlling Ninth Circuit authority holding that rent was not a debt under the FDCPA and, accordingly, found that rent was debt under the FDCPA, following Romea v. Heiberger & Assoc., 163 F.3d. 111, 114-15 (2d Cir. 1998). Read More

In Yelin v. Swartz, 2011 WL 1103450 (E.D.Pa. 2011), Judge Buckwalter found that efforts to collect on a renter’s damage to a rental car constituted a ‘debt’ under the FDCPA, explaining:   In this case, Defendants argue that Plaintiff has failed to state an FDCPA claim because the money he owes does not qualify as a “debt” under the statute.… Read More

In Simmons v. Roundup Funding, LLC, --- F.3d ----, 2010 WL 3859609 (2d Cir. 2010), the Court of Appeals for the Second Circuit found that the bankruptcy code, not the FDCPA, provides the exclusive remedy for fraudulent or defective proofs of claim.   Bankruptcy provides remedies for wrongfully filed proofs of claim. “It is beyond cavil that past bankruptcy practice,… Read More

In Fleming v. Heaton, the Court of Appeals for the Ninth Circuit held that the tort damages arising from a conversion cause of action do not arise out of a "transaction" under the FDCPA's definition of "debt".  The Court of Appeals explained: We have held that “at a minimum, a ‘transaction’ under the FDCPA must involve some kind of business… Read More