A rundown of recent top FCRA, TCPA and FDCPA cases from ACA.
07/28/2023 11:10 A.M.
3 minute read
Each week, ACA International’s compliance team covers relevant case summaries for ACA members. Members may also submit cases for consideration to our compliance team at [email protected].
Here are the cases covered July 25-28:
Quaglia v. SN Servicing: Illinois State Court Tosses Hunstein Claims
A state court in Cook County, Illinois, found that a consumer’s claims failed as a matter of law because the defendants’ communication of private information to a letter vendor was not a communication made in an attempt to collect a debt.
Torvinen v. Seattle Serv. Bureau: Debt Resulting from ATV Accident is Not Actionable Under the FDCPA
A consumer was involved in an off-road vehicle accident and did not have insurance on his off-road vehicle. The other driver did have insurance and filed a claim for the accident. The insurance company hired a debt collector to collect the damages it paid to repair the other driver’s off-road vehicle.
In Rodriguez v. Awar Holdings: Consumer Lacked Standing, Failed to Plead Concrete Injury
A consumer filed a class action lawsuit against a debt collector for allegedly sending collection letters that contained false or misleading information in violation of the FDCPA. The debt collector moved to dismiss the case for lack of Article III standing.
Hall v. Smosh Dot Com: 9th Circuit Finds That a Telephone Subscriber Who is Not the Phone’s Primary User Has Standing to Sue Under the TCPA
The 9th Circuit reversed the decision of a California district court, finding that a telephone subscriber did have standing to bring a TCPA claim despite the fact that her son was the actual user of the phone and the recipient of the text messages.
Gattison v. Credit Control: Previous Knowledge of Attorney Representation Not Imputed to Subsequent Debt Collector
A consumer assumed that knowledge that he was represented by an attorney was imputed to a subsequent debt collector. The debt collector moved to dismiss the case for failure to state a claim.
Davis v. Professional Parking Management: 11th Circuit Holds That Purely Statutory Violation of the FDCPA Does Not Confer Article III Standing
The 11th Circuit held that a plaintiff did not allege he suffered a concrete injury as a result of supposedly misleading collection letters because he failed to claim that he paid the debt or otherwise relied on the letters to his detriment.
Sessa v. TransUnion: 2nd Circuit Holds That There is No Threshold Inquiry Under the FCRA as to Whether Allegedly Inaccurate Information is Legal or Factual in Nature
The 2nd Circuit held that allegedly inaccurate information reported on a consumer’s credit report must be objectively and readily verifiable to be actionable under Section 1681e(b). In doing so, the court also sought to clarify that “there is no threshold inquiry under the FCRA as to whether any purportedly inaccurate information is legal or factual in nature.”
Andrews & Lawrence Pro. Servs.: Fourth Circuit Affirms District Court’s Award of Sanctions
Some collection attorneys who were subject to a settlement agreement for drafting and executing confessed judgment promissory notes for HOAs, later found to be voidable under Maryland law, sued the attorneys for the homeowners for engaging in a civil conspiracy to solicit clients to sue them. The collection attorneys lost their suit and were sanctioned. The collection attorneys appealed the decision.
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