Supreme Court: FDCPA (Sometimes) Does Not Apply to Nonjudicial Foreclosures


In Obduskey v. McCarthy & Holthus, LLP, the United States Supreme Court unanimously held the Fair Debt Collection Practices Act does not apply to a law firm conducting a nonjudicial foreclosure.

While the law firm prevailed in Obduskey, the Court’s opinion suggested several circumstances in which the law firm might have been subject to the FDCPA.  Practically speaking, many firms instituting nonjudicial foreclosures will likely remain subject to the FDCPA.