In Davidson v. Capital One Bank (USA), N.A., Capital One was sued for violating the Fair Debt Collections Practices Act after it sued over an account that it purchased in May 2012. 797 F. 3d 1309, 1310-11 (11th Cir. 2015). Of the $28 billion worth of credit card accounts that were purchased by Capital One in May 2012, over $1 billion were shown to be delinquent and/or in default at the time of its acquisition of said accounts. Id. at 1311. The Fair Debt Collections Practices Act subjects debt collectors, not creditors, to unlawful collection activities.
The plaintiff argued that Capital One was a debt collector within the purview of the Fair Debt Collections Practices Act, as Capital One regularly acquired delinquent and defaulted consumer accounts that were owed to others. Id. at 1312. Capital One disagreed, arguing that it regularly collected debts that were owed to it and not to others.
The Court agreed with Capital One and affirmed the district court’s dismissal of the plaintiff’s amended complaint. Id. at 1318. In reaching its decision, the Court pointed out that the plaintiff’s “amended complaint makes no factual allegations from which [the Court] could plausibly infer that Capital One regularly collects or attempts to collect debts owed or due to someone other than Capital One.”
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