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Collection Of Charged-Off Debt Not Subject To Pennsylvania’S Consumer Licensed Lender Statute

The U.S. Court of Appeals for the Third Circuit affirmed the district court holding that the Pennsylvania Consumer Discount Company Act (“CDCA”) was not implicated in the collection of
charged-off debt that related to a loan made by a CDCA licensee.

The debtor alleged violation of the Fair Debt Collection Practices Act (“FDCPA”) after the collector filed a proof of claim in the debtor’s bankruptcy proceeding to collect on the balance of the charged-off loan account. The debtor claimed the filing was unlawful because the debt originated with a CDCA-licensed lender who sold it to an unlicensed third party, allegedly in violation of the CDCA.
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