Term: 2016
Docket: 16-349
Henson v. Santander Consumer Usa Inc.
- Pro
16-349 HENSON V. SANTANDER CONSUMER USA DECISION BELOW: 817 F.3d 131 CERT. GRANTED 1/13/2017 QUESTION PRESENTED: The Fair Debt Collection Practices Act, 15 U.S.C.§ 1692 et seq., regulates the conduct of "debt collector[s] ." Respondent Santander Consumer USA, Inc., is in the business of purchasing defaulted debt for pennies on the dollar then attempting to collect on that debt from the defaulting consumer. The Question Presented, upon which the circuits are deeply divided, is: Whether a company that regularly attempts to collect debts it purchased after the debts had fallen into default is a "debt collector" subject to the Fair Debt Collection Practices Act? LOWER COURT CASE NUMBER: 15-1187
The case of Henson v. Santander Consumer USA Inc., 2016, revolved around the interpretation of the Fair Debt Collection Practices Act (FDCPA). The plaintiffs, Ricky Henson and others, argued that Santander Consumer USA Inc., a company that had bought defaulted car loans including theirs from CitiFinancial Auto and then tried to collect on them, was a "debt collector" under FDCPA. They alleged unfair debt collection practices by Santander. However, the Supreme Court ruled unanimously in favor of Santander stating that companies who purchase debts and then attempt to collect on them for their own account are not "debt collectors" as defined by FDCPA because they do not seek to collect payments owed or due another. Therefore they are not subject to its restrictions which apply only when an entity is collecting debt owed or due another.
In the Henson v. Santander Consumer USA Inc., case, there was no dissenting opinion recorded as the Supreme Court's decision was unanimous (9-0). The court ruled that a company may collect debts that it purchased for its own account without triggering the statutory definition of a "debt collector" under the Fair Debt Collection Practices Act. This means such companies are not subject to certain restrictions and requirements imposed by this federal law on debt collectors.
