House Bill Could Exclude Attorneys from FDCPA


The House Financial Services Committee recently advanced a bill, H.R. 5082, that could have major implications for the default servicing industry, and most especially the law firms that work within it. The bill amends the definition of “debt collectors” under the Fair Debt Collection Practices Act to exclude “any law firm or licensed attorney engaged in litigation activities in connection with a legal action in a court of law to collect a debt on behalf of a client to the extent that such legal action is served on the defendant debtor, or service is attempted, in accordance with the applicable statute or rules of civil procedure.”