Schlegel Ex Rel. Schlegel v. Wells Fargo Bank, NA

John and Carol Schlegel appeal the dismissal of their action seeking relief under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. §§ 1692 -1692p (2006), and the Equal Credit Opportunity Act (ECOA), 15 U.S.C. §§ 1691 -1691Í (2006). We affirm the district court’s dismissal of the Schlegels’ FDCPA claim, because their complaint did not plausibly allege that Wells Fargo was a “debt collector” for purposes of the Act. We reverse, however, the court’s dismissal of the Schlegels’ claim that Wells Fargo, in violation of ECOA, failed to give them notice within thirty days after taking an adverse action.

I

In January 2009, John and Carol Robin Schlegel obtained a $157,605 loan from NTFN, Inc., secured by their Las Cruces, New Mexico home. They subsequently fell behind on their mortgage payments, and in March 2010, filed a petition in bankruptcy. As part of the bankruptcy process, they reaffirmed the loan pursuant to 11 U.S.C. § 524 . The loan and deed of trust were assigned to Wells Fargo.

On March 27, 2010, Wells Fargo proposed a loan modification agreement that retained the same interest rate but extended the maturity date of the loan from February 2039 to April…