Online Broadband Guide
Online Broadband Guide


Gorsuch Writes First Supreme Court Opinion With Unanimous Backing

Gorsuch Writes First Supreme Court Opinion With Unanimous Backing

Answer: When it's a bank that has purchased defaulted loans, hoping to collect a few pennies on each dollar.

Their debts had been sold to Santander, which then tried to collect on them.

The U.S. Supreme Court on Monday declined to expand a federal law targeting alleged harassment and threats in debt-collection tactics, saying oversight of distressed debt buyers that then become collection entities isn't within the court's purview.

Whether or not Santander violated the FDCPA rules has never been decided, since both the District Court judge and the Fourth Circuit Court of Appeals - and now the Supreme Court - said the case against the bank should be dismissed because its debt-collection practices aren't covered by that law. In this case, however, Santander Consumer was not a "repo man" in the usual sense, as they owned the debt they were collecting from Henson.

The opinion did not consider whether a purchaser of defaulted debt is engaged "in any business the principal goal of which is the collection of any debts".

In the end, he said, Congress can change the Fair Debt Collection Practices Act, to cover anyone who tries to collect a debt.

"By its plain terms this language seems to focus our attention on third party collection agents working for a debt owner - not on a debt owner seeking to collect debts for itself", Gorsuch wrote.

Rather than hire a traditional collection agency, Citi sold the debts, $3.5 billion worth, to Santander, which immediately began hounding the one-time vehicle owners.

Santander, which said it was pleased with the ruling, is a Dallas-based consumer finance company specializing in auto loans, owned in part by a subsidiary of Banco Santander, the euro zone's second-largest bank by market value. Gorsuch wrote in his folksy opening paragraph.

In the court's opinion, since Santander purchased the underlying loan portfolio from Citi, the bank was effectively trying to collect on debts it owns, which wouldn't trigger the FDCPA.

Now, the decision states that there is still room for Congress to create rules to more comprehensively protect borrowers - like, say, "a statute that applies the Act's demands to anyone collecting any debts, anyone collecting debts originated by another, or to some other class of persons still" - but that that's a job for lawmakers, not the judiciary.

follow

editors' picks

June 13, 2017
Donald Trump offers support to Theresa May after polls setback
Steven Fielding, a professor of politics at the University of Nottingham, called her "a zombie prime minister". She left her cabinet largely intact on Sunday before a showdown with party legislators on Monday.

June 13, 2017
Apple WWDC 2017 Conference Revealed New iMac Models With Intel Kaby Lake
With its new thermal design, the device has a more efficient cooling capacity without getting away from similar thin iMac build. As part of that session, a new Mac Pro was promised for 2018, along with an all-new model called the iMac Pro for late 2017.

June 11, 2017
Lewis Hamilton receives Ayrton Senna crash helmet in Canada
Hamilton found over 0.3s in his final run, having previously been just 0.004s faster than Vettel on their first flying laps. Stoffel Vandoorne finished just on the wrong side of the cusp in his McLaren-Honda - 0.130secs off Sainz and a place in Q2.

June 09, 2017
Church bus crashes in Atlanta area; fire chief says 21 hurt
Harnering was one of several on a bus carrying students on their way to the airport for a mission trip to Botswana. First responders tend to a female victim from a deadly vehicle-bus collision near Atlanta on Thu., June 8, 2017.

June 08, 2017
3rd suspect identified in London attack
All three men involved in the attack were confronted and shot dead by armed officers within eight minutes of the first call. After the prosecutors verified his smartphone, numerous clips, ISIS propaganda and Islamic documents were found.

June 07, 2017
White House tries to regroup, but Trump isn't helping
The comments were Trump's first public reaction to Comey's decision to testify publicly about his interactions with the president. Mr Trump was asked about his message for Mr Comey as the president welcomed Republican congressional leaders to the White House.

June 07, 2017
Michigan St players charged in campus sexual assault case
The woman claims King then forced her to perform oral sex on him, then pulled her trousers down and had intercourse with her. A highly touted recruit out of suburban Chicago, King started two games last season as a true freshman and had 10 tackles.

June 06, 2017
Venus Williams the 2017 French Open champ? Why not?
Pliskova will next face Paraguay's Veronica Cepede Royg , who beat Mariana Duque-Marino of Colombia 3-6, 7-6 (2), 6-3. Muguruza , who was seeded No. 4 in Paris, beat Serena Williams in the French Open final past year .

June 06, 2017
Oracle beats Kiwis to earn America's Cup match bonus point
So if the Kiwis beat Oracle on Saturday and eventually reach the match, it will start with a one-point advantage. Oracle , meanwhile, had to quickly fix a broken rudder before its race against Artemis Racing of Sweden.

June 05, 2017
Welcome to Ringside News' coverage of WWE Extreme Rules 2017!
Reigns and Rollins are the only WWE superstars in the fatal-5-way that have ever faced Lesnar. There are only six matches on the card, and none have been announced for the Kickoff show.