Mortgage Statement Can Be Challenged Under Debt Collection Law

Florida homeowners who defaulted on their mortgage loan can use the Fair Debt Collection Practices Act to accuse loan servicer Fay Servicing LLC of sending them improper notices seeking more money on a shorter deadline, the Eleventh Circuit ruled.

The July 1 ruling by the US Court of Appeals for the Eleventh Circuit builds off the court’s May decision in Daniels v. Select Portfolio Servicing, Inc., which held that monthly mortgage statements required by the Truth in Lending Act can constitute communications governed by the FDCPA if they contain debt-collection language that’s not required by the TILA or its ...