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Abstract: 

Many creditors and loan or mortgage servicers provide the option to use certain payment methods, such as online or over-the-phone payments, to which they may apply convenience or service fees. Recently, class action plaintiffs have used state laws with a broader definition of “debt collector” than that in the Fair Debt Collection Practices Act to assert that these convenience fees violate the FDCPA’s restrictions. This article will discuss a recent, significant Fourth Circuit Court of Appeals ruling regarding the Maryland Consumer Debt Collection Act that, in combination with other cases challenging the imposition of fees, should serve as a warning to creditors and mortgage servicers that impose convenience fees.

Keywords: Alexander v. Carrington Mortgage Services, LLC; 15 U.S.C. § 1692F; FDCPA’s Definition of ‘Debt Collector’

Affiliations:  1: Kelley Drye & Warren LLP; 2: Kelley Drye & Warren; 3: Kelley Drye & Warren.