Using common sense and simple rules of legal construction, the Finally Circuit Court of Appeals ruled that mortgage foreclosures were indeed regarding the collection of money and for that reason fall under the Federal Credit debt Collections Practices Respond (FDCPA) especially if the loan is a Fannie Mae or Freddie Mac loan.

In this particular case, JPMorgan Pursuit and their attorneys concealed the fact that Fannie Mae actually managed the loan and the primary note was being kept by a custodian with regard to Fannie Mae’s benefit (as given by doctors in Fannie Mae guidelines).  The particular plaintiff Lawrence Glazer notified JPMorgan Run after and their attorneys that he or she disputed the debt and requested verification. JPMorgan Run after refused to verify the number of the debt or its true owner.

The court kept that mortgage property foreclosure is debt collection beneath the Act and that attorneys who meet the general definition of a “debt collector” will have to comply with the FDCPA whenever engaged in mortgage mortgage foreclosures.  The court ruled a lawyer fulfills the definition of “debt collector” if her principal business reason is mortgage property foreclosures or if he regularly performs this foreclosure.