Fair Debt Collection and Buyers of Loans: Supreme Court Provides Comfort to Parties that Acquire Loans and Then Seek to Collect


The U.S. Supreme Court resolved a circuit split in Henson v. Santander Consumer USA Inc., delivering some clarity on when the Fair Debt Collection Practices Act (FDCPA) applies and when it does not. Circuit courts of appeal had been split on whether the FDCPA applied to banks, financial institutions, and other parties that acquired defaulted loans and then tried to collect on the same loans.