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11th Circuit Finds Data Transmission to Vendor Constitutes a Communication to a Third Party Under FDCPA | Weiner Brodsky Kider PC

To embed, copy and paste the code into your website or blog: The U.S. Court of Appeals for the Eleventh Circuit recently issued an opinion holding that, when a debt collector sent a consumer’s information to a vendor responsible for creating a dunning letter, that action constituted a communication “in connection with the collection of any debt” under the federal Fair Debt Collection Practices Act (FDCPA) provision generally prohibiting communicating consumers’ personal information to third parties.  Such an action thereby created a “concrete injury” giving the consumer necessary “standing” under Article III of the U.S. Constitution to sue the debt collector for damages. 

The Hunstein Effect – Examining the Eleventh Circuit s Ruling and What s Next for Debt Collectors and Their Third-Party Service Providers | Blank Rome LLP

To embed, copy and paste the code into your website or blog: The U.S. Court of Appeals for the Eleventh Circuit has delivered a novel and highly consequential interpretation of the Fair Debt Collection Practices Act that is potentially transformative for debt collectors and their third-party service providers. On April 21, 2021, in Hunstein v. Preferred Collection and Management Services, Inc., F.3d – (2021), the U.S. Court of Appeals for the Eleventh Circuit issued a decision on a case of first impression, finding that a debt collector’s transmittal of a consumer’s personal information to its letter vendor constituted a prohibited third-party communication “in connection with the collection of any debt” within the meaning of section 1692c(b) of the Fair Debt Collection Practices Act (“FDCPA”). As discussed below, this ruling has broad ranging ramifications for the accounts receivable management industry and will likely foster a new wave of litigation under the FD

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