SCOTUS Decision Reaffirms Repossession Not Debt Collection

Today, in a unanimous decision, the U.S. Supreme Court found that law firms performing nonjudicial foreclosures are not debt collectors under the Fair Debt Collection Practices Act (FDCPA). The Supreme Court decision Obduskey v. McCarthy & Holthus LLP, No. 17-1307 (Mar. 20 2019). In their decision, the Supreme Court also reaffirmed that repossessors are not bill collectors. The court was unconvinced by Obduskey’s argument that the limited-purpose definition was meant to apply to those who enforce security interests but have no direct communication with consumers, such as “repo men” who repossess vehicles in the dark of night.