Suing a Debt Collector? Now They Can Buy Your Lawsuit

A federal judge opens the door for bare-knuckled agencies to avoid accountability. If upheld, a law protecting consumers may be defanged.
Photographer: larryfinnphotography/Getty Images/iStockphoto
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Can a debt collector accused of crossing the line avoid liability by buying a consumer’s legal claim out from under her?

A federal judge in Las Vegas said yes. The case deserves attention because if the U.S. Court of Appeals in San Francisco affirms the judge’s ruling, you can be sure that more debt collectors will attempt this counter-intuitive maneuver to shield themselves from federal liability.