Darrisaw v. Pennsylvania Higher Education Assistance Agency, No. 17-12113 (11th Cir. 2020)Annotate this Case
Plaintiff, a student loan borrower, filed suit against PHEAA under the Fair Debt Collection Practices Act after it tried to collect a debt she never incurred. The district court dismissed the complaint, holding that PHEAA, which guarantees federal student loans for the Secretary of Education, is not a "debt collector" under the Act.
The Eleventh Circuit affirmed and agreed with the district court that PHEAA fell within an exception for persons who collect debts "incidental to a bona fide fiduciary obligation." The court stated that the text of the Act makes clear that a person may attempt to collect a debt "incidential to a bona fide fiduciary obligation" whether the debt sought to be collected is "owed or due" another or only "asserted to be owed or due another." Therefore, plaintiff failed to plausibly allege that PHEAA qualified as a debt collector.