PhotoWASHINGTON — A Supreme Court argument on Tuesday explored a gap in a federal debt collection law, one that consumer groups say allows some debt collectors to engage in abusive tactics. When Congress enacted the Fair Debt Collection Practices Act in 1977, it imposed strict regulations on firms that collected other companies’ debts. Several borrowers sued, saying Santander had violated the debt collection law by making false statements and by communicating directly with consumers it knew were represented by a lawyer. “Your client serviced this debt and counted as a debt collector at that time,” she said. Mr. Russell concluded his argument by warning that a decision against his clients could allow all debt collectors to avoid regulation under the federal law.

Source: New York Times April 18, 2017 19:52 UTC