The Hunstein Effect: Examining the Eleventh Circuit’s Ruling and What’s Next for Debt Collectors and Their Third-Party Service Providers the Reach of Its Creditors
The U.S. Court of Appeals for the Eleventh Circuit has delivered a novel and highly consequential interpretation of the Fair Debt Collection Practices Act that is potentially transformative for debt collectors and their third-party service providers.
In Hunstein v. Preferred Collection and Management Services, Inc., the U.S. Court of Appeals for the Eleventh Circuit issued a decision on a case of first impression, finding that a debt collector’s transmittal of a consumer’s personal information to its letter vendor constituted a prohibited third-party communication “in connection with the collection of any debt” within the meaning of Section 1692c(b) of the Fair Debt Collection Practices Act (“FDCPA”).
As discussed below, this ruling has broad ranging ramifications for the accounts receivable management industry and will likely foster a new wave of litigation under the FDCPA.
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“The Hunstein Effect: Examining the Eleventh Circuit’s Ruling and What’s Next for Debt Collectors and Their Third-Party Service Providers the Reach of Its Creditors,” by Wayne Streibich, Nicole R. Topper, Scott E. Wortman, and Anthony Richard Yanez was published in the July/August 2021 edition of Pratt's Journal of Bankruptcy Law, an A.S. Pratt Publication, LexisNexis. Reprinted with permission.
This article was first published as a Blank Rome Consumer Finance Litigation alert on April 26, 2021.