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Eastern District of Pennsylvania Rules that Third-Party Vendors of Law Firms are Debt Collectors
In Khimmat v. Weltman, Weinberg & Reis Co. LPA, the Eastern District of Pennsylvania recently held that the transmission of information to a vendor who completes a mailing is deemed a “communication” to a “person” in connection with the “collection of a debt” under section 1692c(b) of the FDCPA.
The law firm in this case, considered a debt collector in this circuit, used a third-party vendor to mail correspondence to the Borrower, which included the Borrower’s name, address, and information about the nature of the debt. The Court rejected an argument from the law firm that the mail vendor is an “agent” of the law firm, noting that the FDCPA does not explicitly carve out an exception for agents of debt collectors.
Not all circuits follow this logic in considering whether debt collectors can rely on letter vendors, so it is important to consult with legal counsel in the appropriate jurisdiction to determine whether use of these types of vendors is permissible under the FDCPA. Click here to read the full decision.
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Contact us regarding this decision or other servicing issues in Pennsylvania. PLG's Managing Attorney of Foreclosure Operations, Jacqueline F. McNally, Esq., is licensed in Pennsylvania, New Jersey, New York, Georgia, and the District of Columbia. Click the button below to connect with Jackie.
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