First Party Creditors:Can They Be Debt Collectors Under Act?

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David A. Szwak
Posts: 1974
Joined: Thu Jul 13, 2006 11:19 pm

First Party Creditors:Can They Be Debt Collectors Under Act?

Post by David A. Szwak »

Persons who collect their own debts are specifically excluded from the FDCPA.

First party collectors can lose their exemption from coverage under the FDCPA if they engage in any conduct which would lead the least sophisticated consumer to believe that a third party is collecting a debt. McGuire v. Citicorp Retail Services, Inc. 97-7755 (2d Cir.July 1, 1998).
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak
509 Market Street, 7th Floor
Mid South Tower
Shreveport, Louisiana 71101
318-221-6444
Fax 318-221-6555
David A. Szwak
Posts: 1974
Joined: Thu Jul 13, 2006 11:19 pm

Post by David A. Szwak »

1. McAdams v. Citifinancial Mortg. Co., Inc. of NY,
Not Reported in F.Supp.2d, 2007 WL 141128, M.D.La., January 16, 2007 (NO. CIV.A.06 27 A)

...of a debt in default solely for the purpose of facilitating collection of such debt for another. 15 U.S.C.A. § 1692a(4) Analysis Consideration of the Plaintiffs' Supplemental Brief Defendant asserted that the plaintiffs were permitted to file a supplemental opposition memorandum...

...a loan but later obtained the debt while it was in default.FN 30 Satisfying the definition of “creditorâ€
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak
509 Market Street, 7th Floor
Mid South Tower
Shreveport, Louisiana 71101
318-221-6444
Fax 318-221-6555
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