Barbato
v. Greystone Alliance LLC – 3d Cir. – February 22, 2019
The
Fair Debt Collection Practices Act protects consumers from abusive, deceptive,
or otherwise unfair debt collection practices. 15 U.S.C. § 1692(a). It applies to “debt collectors,” defined
alternatively as those engaged “in any business the principal purpose of which
is the collection of any debts” and those “who regularly collect[]” debts “owed
or due another.” Id. § 1692a(6).
Held: The term “debt collector” includes an entity
that acquires a debt for the “purpose of . . . collection” but outsources the
actual collection activity qualifies as a “debt collector.” An entity that otherwise meets the “principal
purpose” definition cannot avoid the dictates of the FDCPA merely by hiring a
third party to do its collecting.
