Consumer Debt v. Business Debt

This folder examines the definition of "debt" under the FDCPA. Whether a "debt" is the subject matter will determine whether the FDCPA applies. Case law and the definition under the FDCPA differentiate consumer debt from business-related debt.
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David A. Szwak
Posts: 1974
Joined: Thu Jul 13, 2006 11:19 pm

Consumer Debt v. Business Debt

Post by David A. Szwak »

Johnson v. Wells Fargo Home Mortg., Inc.
Slip Copy, 2007 WL 3226153
October 29, 2007

1. Consumer Debt v. Business Debt

*9 “The FDCPA protects consumers from unlawful debt collection practices. Consequently, the Act applies to consumer debts and not business loans. The term ‘debt’ is defined as: [A]ny obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes ... 15 U.S.C. § 1692a(5).â€
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak
509 Market Street, 7th Floor
Mid South Tower
Shreveport, Louisiana 71101
Fax 318-221-6555
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