Bloomberg-

The fate of potentially thousands of lawsuits challenging nonjudicial foreclosures is up for grabs after the U.S. Supreme Court on June 28 agreed to hear a case that will determine whether federal debt collection laws apply to out-of-court home repossessions.

The high court elected to hear an appeal of a Jan. 19 ruling in the U.S. Court of Appeals for the Tenth Circuit that found that the Fair Debt Collection Practices Act does not apply to foreclosures that are not done with a judge’s supervision.

While the specifics of the case turn on narrow technical readings of the FDCPA, a 1977 law that aimed to stop abusive debt collection practices, the stakes of the case are high.

[BLOOMBERG]

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