When issues come up that impact a large
number of people, the best way to get an answer we can all rely on is to set
some precedent. When the issue is of a legal nature, the best way to do this is
to take your case to Court. And if you are looking for the final word on a
legal matter, the United States Supreme Court is the place to check. The
Supreme Court has decided a variety of issues over the years that affects us
all, from the Roe v. Wade decision on
a woman’s right to terminate a pregnancy, to the Brown v. Board of Education case that dealt with integration of
public schools. The decisions handed down by the Supreme Court are meant to be
the supreme law of the land, and provide a clear cut answer as to what rights
and duties exist in a particular circumstance. When an issue is near and dear
to your heart, it is good to have guidance and an answer. One of the most near
and dear issues people today have concerns their money, especially if it is at
risk of being taken from them or they are fighting with a debt collector over
the debt.
Debt collectors have a reputation for being
hard to deal with, and for treating debtors with very little respect. In order
to put some decency back into the practice of trying to collect a debt, the
Fair Debt Collection Practices Act was made law in 1977. The aim of this Act
was to prevent abusive or harassing debt collection practices, and since its
inception those who come under the scope of the law have been claiming the law
does not apply to their practices. One such group is a group known as debt
buyers. These buyers will take defaulted debts off a lender’s hands, by paying
pennies on the dollar for what is due, and then turn around and try to collect
the debt. One of the largest of these types of companies is Santander, and they
are the subject of a lawsuit set for review by the Supreme Court. Here is a
little bit about the Santander
case:
• Four
residents of Maryland who had defaulted on their car loans brought a class
action against Santander for their collection practices. The claims were that
Santander had misrepresented the debt and/or made direct contact with the
consumers rather than going through their attorney. These acts are in direct
violation of the Fair Debt Collection Practices Act (FDCPA), and thus the
consumers sought a legal remedy for the violations.
• The case
was thrown out of court because it was found that the FDCPA only applied to
debt collectors and since Santander had bought the defaulted loans for pennies
on the dollar they were not a collector, but rather a creditor.
•
The consumers are appealing this
decision, because they believe Santander is in fact acting as a
debt collector and should be made to abide by the rules that regulate those in
that practice.
While all of this is going on, the
Consumer Finance Protection Bureau (CFPB) is also looking at ways to tighten
the regulations that govern debt collectors’ actions. The outcome of this case
as well as what the CFPB is able to do could change the entire landscape of
debt collection. We stay on top of these events, so we can better serve you as
our client. If you are being harassed by a debt collector, call us to find out
your options.
For more information about
debt collection practices and what to do if you have been harassed by a debt
collector, call us today or reach us online at www.law-ri.com. We offer appointments at multiple locations for
your convenience and can schedule a time to visit with you today.
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