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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