Corporations "People" Under FDCPA, Rules Sixth Circuit

Here’s a quick list of things that are currently considered “people”:

1) People

2) Soylent Green

3) Corporations

This adds an interesting layer to Fair Debt Collection Practices Act cases, as proved by a recent court case, Anarion Investments LLC v. Carrington Mort. Servs. LLC.

In a case before the Sixth Circuit Court of Appeals (serving Kentucky, Michigan, Ohio, and Tennessee), the Court held that legal entities — for example, corporations — can file suit under the FDCPA.

Anarion Investments sued Carrington Mortgage Services under the FDCPA for alleged misrepresentations made during a home mortgage foreclosure.

Judge Raymond Kethledge delivered the opinion, stating that the word “person,” unless stated otherwise, also includes “legal entities.”

He also pointed on that while Congress defined “consumer” as a “natural person,” Congress didn’t take the next step and define “person.” With no other guidance, the Court relied on the language in Citizens United, the 2010 Supreme Court case that allowed corporations personhood.

Judge Bernice Donald delivered the dissent, with the argument that a rational reading of the FDCPA should clearly incorporate the common-sense idea that the statute’s directive is to protect consumers. By including entities like corporations within the definition, it “contradict[s] the law’s overall aim.”