Bohemia, NY (PRWEB) February 06, 2013
On February 6, John Monderine, CEO of Rapid Recovery Solution, responds to an article published by the Palm Beach Post citing an appeals court ruled that housing foreclosures are considered debt collection.
According to the article published by Palm Beach Post, the U.S. Court of Appeals for the Sixth Circuit ruled that mortgage foreclosure actions are defined as “debt collection” under the Fair Debt Collection Practices Act (FDCPA). This ruling reversed a lower court decision in Glazer v. Chase Home Finance, LLC, 09-1262, U.S. District Court Northern District of Ohio. The article said the appellate panel decided third parties trying to foreclose on a mortgage must abide by rules set in the FDCPA.
The article said Glazer brought suit against chase after he inherited a home with an outstanding mortgage serviced by national banking company, Chase. Glazer missed six consecutive payments, so Chase contacted a local law firm to start foreclosing on Glazer’s property even though the firm did not originate the mortgage.
The appeals court said [Chase was not considered a debt collector under the FDCPA, but that lawyers can perform debt collection if he “regularly” performed that duty. The court ruled that the lawyers Chase contracted to begin the foreclosure were considered debt collectors under the FDCPA because it was their “principal business purpose.”
John Monderine, CEO of collection agency Rapid Recovery Solution, said the court made the right decision. “The law firm should be considered a debt collector under the FDCPA because it made the appropriate foreclosure motions and acted as a contractor for Chase,” he said. “If the law firm had been doing foreclosure procedures for years then they should be allowed to proceed with the debt collection process under the Act.”
Monderine also said that while what Chase did was legal, it might have helped out Glazer more if they had contacted another agency. “The lawyers went straight into the foreclosure process, but it would have probably benefited Glazer more if Chase hired a [collection agency that could provide him with other options for making up all that owed money.”
Founded in 2006, Rapid Recovery Solution, Inc. is headquartered at the highest point of beautiful Long Island. Rapid Recovery Collection Agency is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.