Mortgage Disclosures Subject to Debt Collection Laws, Court Says

Mortgage disclosure forms are potentially subject to federal and state debt collection laws if they include language stating that the loan servicer is attempting to collect an outstanding debt, the Eleventh Circuit said.

The Fair Debt Collection Practices Act applies to mortgage disclosures required by the federal Truth in Lending Act when a mortgage servicer clearly states that it is engaged in debt collection, the U.S. Court of Appeals for the Eleventh Circuit ruled in a case involving a homeowner who had previously fended off an attempted foreclosure.

The appellate panel also ruled that Florida’s debt collection laws apply because …