On September 27, the District Court for the Eastern District of New York dismissed a plaintiff’s complaint alleging violations of the Fair Debt Collection Practices Act, finding a collection letter adequately set forth the amount owed and did so in a manner that was not false, deceptive, or misleading by using safe harbor language adopted
Seventh Circuit Holds the Phrase “Current Balance” is Not Misleading Under FDCPA
The Seventh Circuit Court of Appeals upheld dismissal of a consumer’s claim that the phrase “current balance” in a collection letter obscured the static nature of her debt.
Plaintiff Patricia Ann Koehn alleged that the collection letter from defendant Delta Outsource Group, Inc. falsely implied that Koehn’s static debt was subject to interest and fees
Court Dismisses Putative FDCPA Class Action Based on Use of ‘Client’ Versus ‘Creditor’ in Collection Letter
Certified Credit & Collection Bureau (“CCCB”) sent a collection letter to Delia Rodriguez seeking payment of $29.88 for an unpaid medical debt. CCCB’s letter referred to the creditor as its “client” and did not explicitly state that the client was the creditor to whom the debt was owed.
Rodriguez brought a putative class action in
Wrong Number Debt Collection Calls May Violate the FDCPA
In recent years there has been a dramatic increase in the number of claims brought under the Telephone Consumer Protection Act based on calls made to wrong numbers. A decision in the Northern District of Illinois indicates that such calls can also give rise to exposure under the Fair Debt Collections Practices Act.
In Kayyal
Judge Holds Static Debt Does Not Violate Avila for Lack of Disclaimer Regarding Increasing Interest
In Roman v. RGS Financial, Inc., No. 2:17-cv-04917-ADS-AKT (E.D.N.Y. Sept. 6, 2019), Judge Arthur D. Spatt held that RGS did not violate the Fair Debt Collection Practices Act by failing to disclose that interest, late fees, and/or other fees were accruing.
Plaintiff Stephanie Roman alleged that RGS violated the FDCPA when it sent a
Just Because You Own the House Doesn’t Mean You “Owe a Debt” Under the FDCPA
A pro se plaintiff’s lawsuit brought pursuant to the Fair Debt Collection Practices Act was dismissed by the District of New Jersey for lack of standing in Kraft v. Phelan Hallinan Diamond & Jones, P.C., U.S. Dist. LEXIS 126323 (D. N.J. July 30, 2019). Plaintiff Warren R. Kraft inherited real estate from his deceased
Court Rules that Use of Multiple Creditor Names in Debt Collection Potentially Violates FDCPA
A new court decision raises important compliance issues for creditors who use an internal debt collection unit: whether separately naming the unit in a document also naming the creditor in its main business name can cause confusion, giving rise to a claim under the Fair Debt Collection Practices Act.
On September 4, a U.S. d
When $0.00 Could Mean More: Judge Denies Motion to Dismiss in FDCPA Case
On August 28, a district court judge in the Southern District of Indiana denied a defendant debt collector’s motion to dismiss under Rule 12(b)(6) for failure to state a claim. Plaintiff David F. Driver sued LJ Ross Associates, Inc. (“LJRA”), claiming that a collection letter violated the
7th Circuit Upholds Summary Judgment in FDCPA Case Where Consumer Failed to Prove that Credit Card Transactions Were for “Consumer” Purposes
The U.S. Court of Appeals for the Seventh Circuit recently affirmed judgment in favor of two debt collectors and against a debtor for claims arising under the Fair Debt Collection Practices Act and the Wisconsin Consumer Act (“WCA”). In its ruling, the Court held that the debtor did not create a triable issue of material
Sixth Circuit Court of Appeals Affirms Summary Judgment for Debt Collector in FDCPA Case Concerning Additional Fees
Some good news for debt collectors recently came out of the Sixth Circuit Court of Appeals. In Sparks v. EquityExperts.org, LLC, the Sixth Circuit affirmed summary judgment for EquityExperts.org, LLC (“Equity Experts”), rejecting the consumers’ allegations that Equity Experts violated the Fair Debt Collection Practices Act by collecting its