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TCH Files Amicus in Henson v. Santander Consumer USA, Inc.

TCH, the ABA, and CBA filed an amicus with the SCOTUS in support of the respondent, Santander Consumer USA, in Henson v. Santander Consumer USA, Inc. The issue at hand is the application of the Fair Debt Collection Practices Act (FDCPA) to debt purchasers (whose principal business purpose is not debt collection). In the amicus, the Associations argue that (i) Congress, in enacting the FDCPA, did not attempt to apply the statute to all purchasers of debt; (ii) the FDCPA applies only to a specifically defined group of “debt collectors;” and (iii) the Fourth Circuit correctly held that entities like Santander, whose principal business is the origination of loans and who also purchase debt and seek to collect it for their own accounts, are excluded from coverage under the FDCPA. Additionally, the Associations argue that: (i) financial institutions like Santander that provide consumer services are already subject to separate and effective regulatory regimes; and (ii) reversal would increase the costs in the debt sale and origination markets, thereby harming the financial system and consumers.