The Obduskey Supreme Court Case and using the FDCPA to Stop Foreclosures in Non-Judicial States
The Fair Debt Collection Practices Act (FDCPA) regulates the activities of “debt collectors,” but the confusing and convoluted statutory definition of the gateway term itself has led to both extensive litigation and contradicting circuit decisions. However, in a recent unanimous opinion, Obduskey v. McCarthy, 586 U.S. ___ (2019), the United States Supreme Court has attempted to alleviate this confusion, at least with respect to nonjudicial foreclosures.
At issue before the court was whether a law firm engaged in a nonjudicial foreclosure action was a “debt collector” under the FDCPA.
As background, Obduskey, the mortgagor, defaulted upon his loan and, in compliance with Colorado law, received a letter from the lender’s law firm regarding the commencement of foreclosure proceedings. Obduskey disputed the debt in writing, thereby invoking §1692g(b) of the FDCPA, which requires a “debt collector” to “cease collection” until it “obtains verification of the debt.” Instead, the law firm proceeded with initiating a nonjudicial foreclosure action and Obduskey, in turn, filed a federal lawsuit alleging that the law firm failed to cease collection and verify the debt, in violation of the FDCPA.
The FDCPA’s definition for “debt collector” contains two parts, which the Supreme Court referenced as the “primary definition” and the “limited-purpose” definition. The “primary definition” states that a debt collector “means any person…in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or asserted to be owed or due another. 15 U.S.C. §1692a(6).” Read more
For information on foreclosure defense call us at 800-459-1215. We offer litigation support, admissible evidence, expert witness testimony, education, training, and support in all 50 states to attorneys and pro se homeowners.
If you or anyone you know is facing foreclosure, or has already lost a property to foreclosure, and want to sue for mortgage fraud, foreclosure fraud, wrongful foreclosure, or quiet title to your home FRAUD STOPPERS PMA can help you save time and money and increase your odds of success getting the legal remedy that you deserve. If you have received a Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) and you want to know how to respond to the Notice of Default (NOD) or a Foreclosure Notice (Foreclosure Complaint) join FRAUD STOPPERS PMA today because FRAUD STOPPERS has a proven system to help you fight to save your home from foreclosure and sue for mortgage fraud. FRAUD STOPPERS turnkey Quiet Title Lawsuit package or Wrongful Foreclosure Lawsuit package includes a court ready complaint (petition for damages), Bloomberg Securitization Audit, Expert Witness Affidavit, Application for Temporary Restraining Order (to stop a foreclosure sale or stop an eviction), Lis Pendens (to cloud the marketability of the title to the real property), and Pro Se legal education material that can show you how to win a Quiet Title Lawsuit or win a Wrongful Foreclosure Lawsuit. This entire court ready Quiet Title Lawsuit Package or Wrongful Foreclosure Lawsuit Package can help you save money in legal fees and help you increase your odds of success. Join FRAUD STOPPERS PMA today and get mortgage fraud analysis and the facts and evidence you need to get the legal remedy you deserve at www.fraudstopper.org/pma
FRAUD STOPPERS PMA
Feel free to connect with us . . .
Address: Birch Tree MO 65438
DISCLOSURE: NOTICE OF Copyright © 2019 FRAUD STOPPERS, FRAUD STOPPERS PMA. THIS SITE IS NOT INTENDED TO BE MISCONSTRUED AS LEGAL ADVICE. Legal Information is NOT Legal Advice: This site provides “information” that is only designed to help users safely cope with their own general legal needs. Legal information is NOT the same as legal advice — the application of law to an individual’s specific circumstances. FRAUD STOPPERS is a National Private Members Association (PMA). PLEASE TAKE NOTICE OF THE FOLLOWING MARS Disclosure[s] 12 C.F.R. 1015.: (1) FRAUD STOPPERS PMA is NOT Affiliated with any Government Agency or Any Bank Lender; (2) Even if YOU Accept any of FRAUD STOPPERS PMA Products or Services Your Lender May Choose to NOT Change Your Loan. FRAUD STOPPERS products and services are only available to Active Members of the FRAUD STOPPERS PRIVATE MEMBERS ASSOCIATION. To join FRAUD STOPPERS PMA click here: https://www.fraudstoppers.org/members-only/