A rundown of recent top FCRA, TCPA and FDCPA cases from ACA.
07/21/2023 10:10 A.M.
3.5 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 18 – 21:
Rahier v. Thunderbird Collection Specialists: Failure to Remove Dispute Notation Not an FDPCA Violation
A consumer sued a debt collector because her debt continued to be marked as disputed on her credit report after she notified the debt collector that she no longer disputed the debt.
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.
In re Portfolio Recovery Assocs.: Court Holds Debt Collector Did Not Use ATDS When Contacting Consumers
A class of consumers sued a debt collector for calling them using an ATDS without prior express consent. The debt collector moved for summary judgment, claiming the consumers could not prove that they used an ATDS to call the consumers.
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.”
Ross v. Financial Asset Management Systems, Inc.: Seventh Circuit Affirms Summary Judgment on Bona Fide Error
A 7th Circuit appeals court found that calls received for a spouse’s debt did not violate the FDCPA under Section 1692g(b) or 1692d(5) based largely on the agency’s procedures and plaintiff’s attempts to avoid them.
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.
Nyberg v. Portfolio Recovery Associates: Ninth Circuit Holds That Hiring an Attorney to Defend Against State Collection Lawsuit is Enough for Standing
The 9th Circuit Court of Appeals held that hiring an attorney to defend against a state collection action is enough for standing. Nevertheless, the court affirmed the district court’s grant of summary judgment to the defendant, finding the plaintiff’s claims failed on the merits.
Borowski v. Ally: Court Finds No FCRA Violation Where Furnisher Updated Allegedly Erroneous Information
A Wisconsin district court held that the FCRA’s dispute resolution paradigm “exists specifically to allow furnishers to correct errors without incurring liability.”
Evans v. Equifax: Consumer Sufficiently Alleges Injury to Creditworthiness, Fails to Establish Emotional Damages
Following a consumer’s discharge from Chapter 13 bankruptcy, she sued a CRA and several data furnishers after they misreported her consumer information and, after receiving notice of her dispute, failed to investigate the dispute and correct errors, as required under the FCRA.
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