Harris, et al v. Liberty Community Mgmnt.

Plaintiffs filed suit alleging, inter alia, that Liberty, a management company, was a "debt collector" under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692 et seq., and was civilly liable for violating several of the FDCPA's provisions. The exemption at issue on appeal, section 1692a(6)(F)(i), provided that the Act did not apply to persons or entities "collecting or attempting to collect any debt owed... another to the extent such activity is incidental to a bona fide fiduciary obligation." The court held that this exemption applied to Liberty, which collected unpaid assessments on behalf of a homeowners association, as long as the collection of such assessments was not central to the management of the company's fiduciary obligations. Accordingly, Liberty was not a debt collector under the Act and its actions did not violate state law. Therefore, the court affirmed the district court's grant of summary judgment in favor of Liberty. View "Harris, et al v. Liberty Community Mgmnt." on Justia Law