In Davidson v. Capital One Bank (USA), N.A., 797 F.3d 1309 (11th Cir. 2015) (No. 14-14200), plaintiff alleged that Capital One violated certain provisions of the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. § 1692, et seq., in attempting to collect on defaulted credit card accounts that Capital One had acquired from another bank. The district court dismissed the complaint on the ground that Capital One was not a “debt collector” as defined by the FDCPA and, thus, was not subject to the Act. The Eleventh Circuit affirmed, holding that it need look no further than the plain statutory text to concluded that a bank (or any person or entity) does not qualify as a “debt collector” under the FDCPA where the bank does not regularly collect or attempt to collect on debts “owed or due another” and where the collection of any debts is not the “principal purpose” of the bank’s business. The court ruled that this was true even where the consumer’s debt was in default at the time the bank acquired it. The court found that Capital One’s collection efforts related only to debts owed to it (not others) and that debt collection is only some part of, and not the principal purpose of, Capital One’s business.
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Eleventh Circuit Rules That Capital One Is Not Subject To FDCPA
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