A rundown of recent top FCRA, TCPA and FDCPA cases from ACA. Editor’s note: This article is available for members only.
10/28/2022 1:20 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 Oct. 25-28:
Ricks v. Medicredit: Consumer Challenges Summary Judgment in Medical Debt Standing Case
As previously reported, a consumer was treated at a hospital for injuries sustained in a car accident. The debt collector sent the consumer a letter and the consumer sued the debt collector for attempting to collect more than what was owed on the account. The court granted the debt collector’s motion for summary judgment, and the consumer filed a motion for reconsideration.
Vazzano v. Receivable Management: Court Finds Receiving an Unwanted Letter Was Sufficient for Standing
A Texas district court held that, based on the consumer’s testimony, a jury could find that she suffered an invasion of privacy and harassment by receiving an unwanted letter, which amounted to a harm with a “close relationship” to the tort of intrusion upon seclusion.
Sullivan v. YES Energy: Consumer Alleges Debt Collection Claim Against Payment Processor Under MD Law
Certain provisions of the Maryland Consumer Debt Collection Act are broader than the FDCPA. The consumer in this case sufficiently stated a claim that a payment processor violated the Maryland debt collection law because it does not distinguish between passively accepting monthly payments and actively enforcing the payment obligations of defaulting borrowers.
Forslund v. Experian: Court Holds That Reporting Debt Owed After Bankruptcy is Not Willful or Negligent
The consumers filed for bankruptcy and stated they would reaffirm they had a lease on a pickup truck. The consumers did not reaffirm but continued to make payments, which were accepted by the creditor. After the bankruptcy was discharged, the debt was reported as current and in good standing. However, the consumers thought their credit report should state the debt was discharged in bankruptcy, just like their other debts.
Zinetti v. Deutsche Bank: Loan Servicer Wins Summary Judgment on FDCPA Claims
A loan servicer could be considered a debt collector under the FDCPA because the loan was allegedly in default when the servicer took over the account. However, the consumers failed to sufficiently allege the servicer used unfair or unconscionable means to collect the payments owed on their mortgage account, because the consumers had not pointed to any specific error in the servicer’s calculations.
Elliott v. Roberts: Court Permits FDCPA Claim Involving Gender-Based Name Change to Proceed
A consumer’s claims that a credit union and its lawyer violated the FDCPA by interfering with her state name-change case might involve harassment or abusive conduct, and the court permitted the claims to proceed. FDCPA cases involving a lawyer’s representations in the course of litigation are fact-specific and require a case-by-case analysis.
Vera v. FlexShopper: Court Grants Consumer’s Motion in Part, Reduces Damages and Attorney’s Fees
A collection attorney challenged a default judgment entered against him for contacting a consumer three times by email after he refused to pay. The court granted judgment in favor of the consumer on three of his claims and reduced the amount of damages and attorney’s fees.
Rosenberg v. McCarthy, Burgess & Wolff: No Standing Under the FDCPA For Alleged Informational Injury
A New York district court found that a plaintiff did not have Article III standing regarding his claim of an incorrect collection amount because he did not rely on the alleged misrepresentation, nor could he show a potential risk of future harm.
McAllister v. Lake City Credit: After Collector Defaults in FDCPA Suit, Court Certifies Class Action
Even though a clerk has entered default judgment against a collector on FDCPA claims, a district court may still consider whether to certify a class with respect to the claims. Otherwise, FDCPA defendants would have an incentive to default in situations where class certification seems likely.
Garcia v. Perfection Collection: Consumer Granted Default Judgment, Awarded Statutory Damages and Attorney’s Fees
A consumer claimed that he never opened an account that was showing on his credit report. The consumer disputed the debt with the CRAs, but the debt collectors reporting the debt did not investigate the debt. The consumer moved for default judgment.
Honore-Rogers v. USAA: Court Declines to Rule on Whether the Issuance of a Form 1099-C Extinguished a Debt
A Louisiana district court declined to rule at the pleadings stage on whether the issuance of a 1099-C acted to extinguish for credit reporting purposes.
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