An 11th U.S. Circuit Court of Appeals case has left the debt collection world on pins and needles for a year wondering if a ministerial part of their business practice was suddenly a violation of the Fair Debt Collection Practices Act (FDCPA). For years, it was common practice to share consumer debt information with third-party mail vendors to send collection letters, but one ruling threw that all into chaos.
Through a series of appeals, the final outcome of the Hunstein v. Preferred Collection action has been reached and the hand-wringing is over, for now. But the extent of its impact is yet unknown. A look at the long and winding road to resolution in favor of debt collectors underscores how tenuous the current state of the law is and the potential for plaintiffs to bring claims that would avoid its reach.
Those involved in collection activities should take heed of the potential legal exposure.