TCPA Vicarious Liability Passes from Collector Through Servicer to Original Creditor

The Ninth Circuit Court of Appeals recently held that an original creditor was liable under the Telephone Consumer Protection Act (TCPA) for calls made by a debt collector with which the creditor had no contractual relationship. In Henderson v. United Student Aid Funds, Inc., Henderson took out student loans ultimately owned by United Student Aid Funds, Inc. (USA Funds). USA Funds contracted with Navient Solutions, Inc. (Navient) to service certain of its loans, including Henderson’s, and Navient, in turn, contracted with various collectors.