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Homeowner lostBindingPending attorney reviewDebt collectors (FDCPA)

Obduskey v. McCarthy & Holthus LLP

Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019)

Court
Supreme Court of the United States
Decided
2019-03-20
Docket
17-1307

What happened

Mr. Obduskey disputed his debt with the law firm hired to foreclose his Colorado home non-judicially. The firm went ahead without verifying the debt, and he sued under the Fair Debt Collection Practices Act.

What the court decided

The Supreme Court held that a business engaged only in non-judicial foreclosure is not a "debt collector" under the FDCPA, except for the Act's provision barring threats to take property without a present right to do so.

In the court's words

“those who engage in only nonjudicial foreclosure proceedings are not debt collectors within the meaning of the Act”

Why it may matter to you

It saves you from a dead end: in a Texas-style non-judicial foreclosure, the FDCPA often does not reach the trustee's law firm. Put your energy into state notice rules and servicer rules instead.

Why it might not apply

A firm that also collects money (letters demanding payment, deficiency suits) may still be covered. State debt-collection laws, like the Texas Debt Collection Act, are separate.

Most useful when

  • You want to use the FDCPA against the law firm running a non-judicial foreclosure

How to cite it

The full citation for the first time you mention it, a short form for later, and a sample sentence you can adapt.

Full citationObduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019)Short formObduskey, 586 U.S. 466

Draft — check it with free legal aid before you file or say it in court.

In Obduskey v. McCarthy & Holthus LLP, 586 U.S. 466 (2019), the court held that a business engaged only in non-judicial foreclosure is not a debt collector under the FDCPA, apart from the provision barring threats to take property without a present right. Here, [say in one sentence what happened in your case]

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