U.S. Supreme Court to hear Santander debt collection dispute
Source: Reuters
The U.S. Supreme Court on Friday agreed to decide whether firms collecting on debt they bought for pennies on the dollar can be held liable in lawsuits brought by debtors they targeted under a federal law cracking down on debt collectors' abusive practices.
The justices agreed to review a lower court's decision to dismiss a consumer class action lawsuit against Santander Consumer USA Holdings Inc (SC.N) over allegations it violated the Fair Debt Collection Practices Act.
Companies that buy delinquent debt from the original lenders and then go out and collect it from the borrowers are becoming a fast-growing segment of the multibillion-dollar debt collection industry. The case taken by the high court could have a major impact on these debt buyers.
The U.S. Congress enacted the debt collection law in 1977 to prohibit collectors from using abusive, unfair or deceptive practices to recoup money.
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Read more: http://www.reuters.com/article/us-usa-court-debtcollection-idUSKBN14X2DY
U.S. | Fri Jan 13, 2017 | 3:17pm EST
By Andrew Chung | NEW YORK
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