US top court won't expand debt-collection abuse law in Santander case

The U.S. Supreme Court on Monday declined to widen the reach of a federal law targeting abusive debt-collection tactics such as harassment and threats, ruling it does not cover companies that buy debt, sometimes for pennies on the dollar, and then collect it.

The justices, in a 9-0 ruling, upheld a lower court's dismissal of a proposed consumer class action lawsuit against Santander Consumer USA Holdings Inc over allegations it violated a law called the Fair Debt Collection Practices Act. The four Maryland residents had defaulted on car loans and had sought to sue Santander. The ruling was the first authored by the court's newest justice, Neil Gorsuch.