A summary of recent top FCRA, TCPA and FDCPA cases from ACA. Editor’s note: This article is available for members only.
05/27/2022 2:00 P.M.
4 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 May 24 – May 27
Cochran v. Newrez: Court Remanded FCRA Action, Awarded Fees to Consumers
A mortgage servicer’s argument in favor of removing a FCRA action to federal court was not objectively reasonable and the court awarded attorney’s fees against the mortgage servicer.
Labarr v. Convergent Outsourcing: Credit Report Did Not Misrepresent the Account’s Age
A Pennsylvania district court rejected a consumer’s claim that the debt collector re-aged the account by reporting the date the account was opened with the debt collector.
Chuluunbat v. Weltman, Weinberg & Reis: 7th Circuit Finds District Court Erred in Dismissing Consumer’s Case for Lack of Article III Standing
A consumer’s credit card debt was reduced to judgment. A debt collector attempted to collect on the judgment, but failed to mention in its letter to the consumer that the debt was reduced to judgment and was accruing interest. The consumer sued and the court dismissed his case for lack of standing. The consumer appealed the decision.
Makhnevich v. Bougopoulos: Court Grants Summary Judgment for Collection Law Firm on All FDCPA Claims
The court rejected a consumer’s claim that a law firm engaged in “sewer service.” The consumer failed to produce admissible evidence that specifically rebutted the statements in the process server’s sworn affidavit creating a presumption that service has been effectuated in the manner described in the affidavit of service filed by the law firm.
Miles v. Medicredit: Motion for Partial Judgment on the Pleadings Denied, Court Grants Request for Discovery
A consumer alleged a debt collector used an autodialer to contact him without his prior express consent. The debt collector moved for partial judgment on the pleadings in the wake of Facebook v. Duguid. The court denied the motion.
Beal v. Outfield Brew House: 8th Circuit Finds Texting System Was Not An ATDS
The 8th Circuit Court of Appeals held that the “Txt Live” system used by two establishments to send text messages to former and potential customers was not an ATDS under the TCPA.
Leavell v. FRS: Calling a Wrong Number Twice Did Not Violate the FDCPA
A consumer defaulted on her credit card debt, and her daughter’s cellphone number was listed on the account. A debt collector called the consumer’s daughter in an attempt to collect the debt from the consumer. The debt collector was told they had the wrong number, but called again. The debt collector moved for summary judgment to contest the issue.
Tyner v. Probasco Law: Law Firm’s Notice of a Hospital Lien Was Not a Communication Under the FDCPA
A Kansas district court found a notice of lien and an accompanying letter regarding the plaintiff’s third-party payer claims were not communications under the FDCPA. Editor’s note: This is an archived decision.
Hrdlicka v. Bruce: Court Finds Standing, Dismisses Some FDCPA Claims
A consumer failed to state a claim under Section 15 U.S.C. Section 1692f(1) of the FDCPA, which permits the collection of amounts authorized by the agreement creating the debt, after a state court deemed the attorney’s fees were reasonable in the case. Editor’s note: This is an archived decision.
Russell v. Ray Klein: Court Finds No Signs of Collusion in Settlement of FDCPA Lawsuit
When courts in the 9th Circuit are ruling on a settlement agreement negotiated before a class action is certified, the court requires the settlement to meet a higher standard of fairness to ensure no collusion is involved.
Osorio v. Transworld Systems: Letter Was Not Misleading to Least Sophisticated Consumer
A consumer received a collection letter from a debt collector. The consumer alleged that the letter failed to clearly identify the current creditor to whom the alleged debt is owed, which would confuse or deceive a least sophisticated consumer. The debt collector moved to dismiss the case for failure to state a claim.
Daniels v. Select Portfolio Servicing: 11th Circuit Finds TILA Notice With Debt Collection Language Was a “Communication” Under the FDCPA
The 11th Circuit found that monthly mortgage statements required by TILA can constitute communications under the FDCPA if they contain debt-collection language that is not required by the TILA or its regulations.
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