Fair Debt Collection Practices Act—Non-Judicial Foreclosure Proceedings

Obduskey v. McCarthy & Holthus LLP, No. 17-1307

The question presented in this case is whether the Fair Debt Collections Practices Act (FDCPA), which protects against unfair and deceptive practices by “debt collectors,” applies to nonjudicial foreclosure proceedings. In the decision below, the Tenth Circuit affirmed the district court’s dismissal of the petitioner’s FDCPA lawsuit, which was based on alleged improprieties in nonjudicial foreclosure proceedings begun by respondents. In conflict with other circuits, the Tenth Circuit ruled that the respondents were not liable as “debt collectors” under the FDCPA because such proceedings involve the enforcement of a security interest rather than an attempt to collect money from the debtor. The Supreme Court granted certiorari to resolve the circuit split.