Court Says Debt Buyer Not Licensed Under NJCFLA Violates FDCPA: Is That Right?

Financial Services Attorney Bob Jaworski wrote an article for the New Jersey Law Journal on the court's decision to dismiss a putative state-wide class action complaint. The complaint alleged that RAB Performance Recoveries (RAB) violated section e(10) of the federal Fair Debt Collections Practices Act, which prohibits the "use of any false representative or deceptive means to collect or attempt to collect any debt." The ruling's foundation relied on the fact that RAB was required to have a license under the New Jersey Consumer Finance Licensing Act (NJCFLA) to pursue collection of the debts it purchased. As RAB did not have such a license, it had no legal right to collect the debt.

Mr. Jaworski explains how this ruling is questionable.

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