Your Credit and the SCOTUS's FDCPA Ruling ...

[David Dachtera]

Let me start off by saying that I am NOT a financial or legal professional and none of what you are about to read should be construed as either financial or legal advice. Always consult a qualified professional.

At my investing group's credit workshop today, the instructor made only general statements about how the SCOTUS's recent ruling about the FDCPA (Fair Debt Collection Practices Act) impacts individuals.

He did state, however, that the bulk of the impact centers on ownership of any debt for which an attempt to collect is being made.

His take is that this will focus primarily on third-party collectors who purchase defaulted debt. It was this group who actively pursued this case all the way through to the Supreme Court.

Up until now, no clear distinction was being made between an assigned collector - retained by a creditor to collect a debt - and those who purchase defaulted debt. Now, clearer lines are expected to be drawn.

In the case of third party defaulted debt purchasers, the consumer protections hereunto provided by the FDCPA now are no longer enforceable as the Supreme Court has ruled that those provisions within the FDCPA no longer apply to such collectors.

A large number of new collection lawsuits are expected to be filed by such collectors since they can now pursue collection ruthlessly and viciously with near-total impunity.

Let me say again that I am NOT a financial or legal professional and none of what you have just read should be construed as either financial or legal advice. Always consult a qualified professional.