From: Charles Cox [mailto:email@example.com]
Sent: Friday, May 18, 2012 9:26 AM
To: Charles Cox
Subject: FDCPA claims are reinstated – Debt Collector Status Depends on if Entity Originated the Debt and When "Default" Occurred
FDCPA claims are reinstated
· Winston & Strawn LLP
On April 30th, the Sixth Circuit addressed liability under the Fair Debt Collection Practices Act. It held that an entity that did not originate the debt in question (a mortgage) but acquired it and attempts to collect on it, is either a creditor or a debt collector depending on the default status of the debt at the time it was acquired. The same is true of a loan servicer, which can either stand in the shoes of a creditor or become a debt collector, depending on whether the debt was assigned for servicing before the default or alleged default occurred.