A federal judge has ruled that debt collection law firms are subject to the rules of the Fair Debt Collection Practices Act in cases dealing with mortgage foreclosures.
U.S. District Judge Timothy J. Savage of the Eastern District of Pennsylvania denied a motion by law firm Phelan Hallinan Diamond & Jones seeking to dismiss plaintiffs Tina Collins and Glendale Walker’s FDCPA claim, which alleged the firm failed to cease all collection activity before verifying the debt after the plaintiffs first disputed it.
