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A Close Call in This Debt Buyer Licensing Decision – Jan. 25 Webinar to Explain Tough Licensing Issues for Debt Buyers

licensing webinarOn Jan. 19, a federal court in Pennsylvania dismissed a complaint against a debt buyer which alleged violations of the federal Fair Debt Collection Practices Act stemming from an alleged failure to be licensed under the Pennsylvania Consumer Discount Company Act.

The decision found that “purchasing a debt” of the kind and type at issue here (a Capital One credit card account) does fall within the purview of the CDCA.

However, although the debt buyer did not have a CDCA license, it did hold a license issued by the Pennsylvania Department of Banking to collect interest on motor vehicle loans. That license is all it took to escape the CDCA because, according to the decision, a section of the CDCA explicitly exempts entities that hold licenses issued by the Department of Banking.

The decision highlights the difficulties asset purchasers face in determining whether licensure is needed to collect purchased debt in a particular state. There are some steps your company can take to address these licensing issues. On Monday, Jan. 25, join me and my partner, Eric Rosenkoetter, during an ACA International webinar as we discuss this decision and others like it and provide strategies for tackling licensing today. Click here to register.

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Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as outside counsel to RMA International, on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law. From 2014 to 2017, he chaired the ABA's Bankruptcy and Debt Collection Subcommittee. For more information, see https://mauricewutscher.com/attorneys/donald-maurice/

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