A rundown of recent top FCRA, TCPA and FDCPA cases from ACA.
04/06/2023 3:00 P.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 April 4 – 6:
April 4:
Stallworth v. Terrill Outsourcing Group LLC: Hunstein Win in Illinois State Court
A state court in Cook County, Illinois, rejected a Hunstein claim, finding that no communication in connection with the collection of a debt occurred.
Continue reading the case summary here.
Bernard v. Bruce: No Standing to Sue Over Attorney Fee Request That Was Never Granted
A district court found that a consumer lacked Article III standing to assert claims that the defendant’s allegedly excessive attorney fee request violated that FDCPA because the fee request was never actually awarded by the court.
Continue reading the case summary here.
Branham v. TrueAccord: Consumer Who Received Two Collection Emails Lacked Standing
A consumer’s debt was purchased by a debt buyer. She notified the debt buyer she was represented by an attorney. Despite the correspondence, the debt buyer sent the consumer two collection emails. The consumer sued the debt buyer for violating the FDCPA.
Continue reading the case summary here.
April 5:
Bright v. Treehouse Grp: FDCPA Dismissed Claims When Consumers Failed to Demonstrate Defendants Were Debt Collectors
A court dismissed two consumers’ FDCPA claims for lack of subject matter jurisdiction on the basis that a landlord was a creditor and not a debt collector, even though the landlord’s lawyer had sent the consumers a letter saying the communication was an attempt to collect a debt by a debt collector.
Continue reading the summary here.
Pulley v. Sterling Bancorp: Court Finds Data Furnisher Conducted a Reasonable and Timely Investigation
A husband and wife found a mistake on their credit report concerning their mortgage. The couple disputed the debt with the CRAs, and the data furnisher investigated the debt and corrected the inaccurate information. The consumers sued the data furnisher for violating the FCRA.
Continue reading the summary here.
Hollins v. Church: Court Refuses to Approve Settlement of FDCPA Class Action
Due to the lack of adversity and the incentives of the parties, courts must give intense judicial scrutiny to proposed class action settlements, considering factors including the strength of the plaintiff’s case on the merits compared to the amount of the defendants’ settlement offer.
Continue reading the summary here.
April 6:
Morton v. O’Brien: 6th Circuit Upholds District Court’s Attorney Fee Award in Favor of FDCPA Plaintiff
The 6th Circuit found that a district court did not abuse its discretion when it awarded over $88,000 in attorneys’ fees in favor of the plaintiff.
Continue reading the summary here.
Perez v. Equifax: Court Finds Issuing a Consumer a 1099-C Form Does Not Necessarily Discharge a Debt
A consumer claimed that she received a 1099-C form from a creditor and notified her the debt was discharged. The creditor continued to report the debt to the CRAs as delinquent. The consumer disputed the debt and then sued the creditor/data furnisher for refusing to investigate her dispute.
Continue reading the summary here.
Abrams v. Sequium Asset Solutions: Court Reduces Attorney Fee Award by Almost Half
Although a collector can cap the damages due a consumer in an FDCPA case by making a Rule 68 offer of judgment, the court may still award a consumer substantial fees due to the complexity of the case.
Continue reading the summary here.
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