As you may be aware, on March 20, 2019, the United States Supreme Court issued a ruling answering the question of whether or not businesses engaged in nonjudicial foreclosure proceedings are considered debt collectors under the Fair Debt Collection Practices Act (“FDCPA”), in 15 U.S.C. §§ 1692, et seq. In Obduskey v. McCarthy & Holthus LLP, Case No. 17-1307, the Supreme Court affirmed the decision of the Tenth Circuit Court of Appeals finding that a business engaged in no more than nonjudicial foreclosure proceedings is not a debtor collector under the FDCPA, except for the limited purposes of §1692f(6). The Court looked at the legislative history and reasoned that the legislature would not have put in the exception for the enforcement of security interests in §1692f(6) if the intent was to have the entire Act apply to those solely conducting nonjudicial foreclosures.
The Supreme Court’s decision provides much need clarity to the Circuits, which have expressed differing views as to how the FDCPA applies to nonjudicial foreclosure proceedings. In addition, it positively impacts foreclosure law firms in states like Michigan, which have nonjudicial foreclosure proceedings. If you would like to further discuss this decision and how it will impact Michigan foreclosures, please contact Managing Attorney, Michael Woods, at firstname.lastname@example.org or (248) 853-4400, ext. 1199.