Federal Appellate Ruling: Management Companies Are Not Subject To Fair Debt Collection Practices Act

A Federal Appeals Court has ruled that the Fair Debt Collection Practices Act (“FDCPA”), which imposes civil liability on debt collectors for certain prohibited practices, does not apply to community management companies that provide a variety of services to common interest communities. In Harris v. Liberty Community Management, Inc., the Eleventh Circuit Court of Appeals held that management companies are protected by a provision in the FDCPA that exempts individuals and entities whose collection responsibilities are “incidental to a bona fide fiduciary obligation.” This exemption would not apply to management companies whose central or primary obligation is the collection of assessments.  Read More……


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