A lender who lends money used to purchase a parcel of property and who holds a junior lien on that property cannot sue the borrower personally for the loan balance if the senior lienholder who also contributed to the purchase of the property forecloses on the property but does not collect enough from the foreclosure sale to pay off the junior lienholder. [Former Code of Civil Procedure section 580b]. But can the borrower sue the junior lienholder for trying to collect a no-longer-enforceable debt if the lienholder’s collection efforts inaccurately imply that the debt is still enforceable? The appellate court concluded the borrower may sue the debt collector under the Fair Debt Collection Practices Act [FDCPA; 15 U.S.C. § 1692 et seq.]; and may sue the junior lienholder or its debt collector under the Rosenthal Fair Debt Collection Practices Act, Civil Code section 1788 et seq.] and Unfair Competition Law [Business and Professions Code section 17200 et seq.]. However, the borrower may not sue for violations of the Consumer Legal Remedies Act [CLRA; Civil Code section 1750 et seq.]. (Alborzian v. JPMorgan Chase Bank, N.A. (Cal. App. Second Dist., Div. 2; March 12, 2015) 235 Cal.App.4th 29, [185 Cal.Rptr.3d 84].)
