Nationstar Mortgage is not liable under the Fair Debt Collection Practices Act (FDCPA) for a class action lawsuit that claims the company mailed several hundred thousand deceptive letters to Texas homeowners, according to U.S. District Judge Xavier Rodriguez in San Antonio.
The company still faces claims under the broader Texas Debt Collection Act (TDCA).
The case originated when San Antonio resident Naomi Boles said Nationstar, her home equity loan provider, accused her of falling behind on payments. Boles claimed the lender then retained collection agency, Moss Codilis LLP, which sent her a letter stating: "If you voluntarily surrender possession of the collateral specified herein, you could still owe additional monies after the money received from the sale of the collateral is deducted from the total amount you owe."
Boles in a seven-page complaint against Nationstar and Moss Codilis accused both companies of violating the FDCPA and the TDCA. Boles sought certification to sue on behalf of those home equity borrowers that received the same collection letter.
Nationstar had moved to dismiss the complaint, arguing that it is not a collector under either statute.
"The [Texas] statute separately defines third-party debt collectors as any debt collector that falls within the FDCPA definition," Rodriguez wrote in his ruling. "Thus, the TDCA's definition of a debt collector is broader than that under the FDCPA, and includes creditors seeking to collect debts originated by them."
The two defendants have until Aug. 30 to respond to the motion for class certification.
