Debt Collector Foreclosure and Proper Venue Under the Fair Debt Collection Practices Act (15 U.S.C. § 1692i)

The Fair Debt Collection Practices Act (FDCPA) was enacted to prevent abuse and ensure fairness in the collection of consumer debts. One key protection it offers is found in 15 U.S.C. § 1692i, which governs the venue—the proper judicial district—where a debt collector can bring legal action against a consumer.

What § 1692i Says About Venue

A debt collector who files a lawsuit to collect a consumer debt must file it only in the judicial district where the consumer:

• Signed the contract that created the debt, or
• Currently resides at the time the lawsuit is filed.

This means a collector cannot randomly choose a court that is far from the consumer’s home or inconveniently located. Doing so can constitute a direct violation of the FDCPA and may expose the collector to legal liability.

Why This Matters in Foreclosure Cases

Although foreclosure is often treated as a civil action concerning property, when a debt collector initiates foreclosure activity—especially when it seeks to collect payment on a mortgage—it may fall within the scope of the FDCPA. If the foreclosure is filed in an improper venue or in a court lacking jurisdiction over the property or debtor, the proceeding can be challenged and dismissed.

How to Identify an Improper Venue

You can verify whether the foreclosure or debt collection lawsuit was filed in the correct judicial district by checking:

1. The county and court name on the summons or complaint.
2. Your current address and the address where the debt contract was signed.
3. State or local venue rules that define which courts handle debt collection or foreclosure actions.

Consumer Rights and Remedies

If a debt collector violates § 1692i by filing in an improper venue, consumers may:

• File a complaint with the Consumer Financial Protection Bureau (CFPB).
• Seek damages under the FDCPA for improper filing and any resulting harm.
• File a motion to dismiss the case or a counterclaim in federal court.

The purpose of these protections is to prevent collectors from gaining an unfair advantage and to ensure defendants can appear in court conveniently and fairly.

Key Takeaways

• Debt collectors must respect the venue provisions of 15 U.S.C. § 1692i.
• Improper venue filings can invalidate an action and create liability for the collector.
• Foreclosure actions by debt collectors can fall under the FDCPA’s jurisdictional rules.
• Consumers have the right to challenge actions filed in the wrong court.

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