Is Foreclosing on a Security Interest Collection of a Debt? Perspectives on the Application of the FDCPA

In Brief

• Does the FDCPA apply generally to the enforcement of security interests in addition to traditional debt collection practices? Some courts in a recent surge of cases say “yes”; others say “no.”
• Vague, key provisions, along with the tension between the broad ameliorative goals of the FDCPA and a statutory text that is quite limited in scope, account for the inconsistencies across jurisdictions.
• The CFPB promotes an expansive interpretation; therefore, any party engaged in the enforcement of security interests should be aware of the potential for the FDCPA to cover its conduct.