In Kaymark v. Bank of America, the Third Circuit ruled last week that a debt collector who sues a homeowner in a foreclosure case can be held liable for breaking the Fair Debt Collection Practices Act. In this case, Bank of America's lawsuit against Dale Kaymark to foreclosure his property included $2,050.00 in fees that hadn't yet been incurred. When it demanded these fees in its lawsuit, according to the Third Circuit, which convenes in downtown Philadelphia, Bank of America was misrepresenting the amount of money actually owed, in violation of the FDCPA.
Courts across the country are split on this issue, making the question of whether the FDCPA applies to foreclosures (or to court filings, like Complaints, for that matter) more and more attractive for the Supreme Court.
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