Thursday, April 22, 2010

Fair Debt Collection Act and Foreclosure

On April 21, 2010, the United States Supreme Court ruled that an attorney for the lender in a mortgage foreclosure action can violate the Fair Debt Collection Practices Act (FDCPA") regardless of the exception for an unintentional and bona fide error under Section 1692k(c)because a lawyer is supposed to know the law and therefore an error cannot be unintentional.

This should keep foreclosing lenders in check because they often are overwhelmed and unsure of the facts and law in front of them at foreclosure settlement conferences and in HAMP applications.

It seems that our society is really moving to a pro-borrower stance.