9th Cir. Asks Nevada: Is an FDCPA Claim a Compulsory Counterclaim in a Collection Suit?

On Monday, the Ninth Circuit Court of Appeals issued an order certifying a question to the Nevada Supreme Court. What did the Ninth Circuit inquire about? Whether or not, under Nevada law, a Fair Debt Collection Practices Act (FDCPA) claim is a compulsory counterclaim in a collection lawsuit. If Nevada answers in the affirmative, debt collection law firms might see a drop in FDCPA suits, at least in Nevada.

Background: What Spurred the Question?

It all started with a medical debt owed by the consumer. In the agreement for medical services, the consumer agreed to be financially responsible for amounts not covered by insurance and, if the service provider needs to place the account with a collection agency, he would be responsible for any collection/legal fees.

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