The 11th Circuit ruled recently that a non-originating debt holder is not a “debt collector,” even though the debt was in default at the time it was acquired, thus reinforcing the 11th Circuit precedent narrowly applying the federal Fair Debt Collection Practices Act (FDCPA) to debt collectors only. In Davidson v. Capital One Bank, N.A., __ F. 3d. __, 2015 WL 4994733 (11th Cir. 2015), the 11th Circuit affirmed the district court’s dismissal of this putative class action in which Capital One Bank had acquired $28 billion of credit card accounts from HSBC, including Davidson’s account, which, at least in part, had been reduced to a $500 judgment in favor of HSBC at the time of Capital One’s acquisition. Of the overall portfolio of credit card accounts, over $1 billion were listed as delinquent or in default at the time of the acquisition, including Davidson’s account.Davidson’s amended complaint alleged that Capital One’s collection efforts related only to debts it was owed, and that debt collection was only some part of, rather than the principal purpose of, Capital One’s business.Capital One sued Davidson in state court after acquiring his account even though that account had been the subject of the prior HSBC judgment. Davidson… Read full this story
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