A summary of recent top FCRA, TCPA and FDCPA cases from ACA. Editor’s note: This article is available for members only.
5/28/2021 8:30
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 24-28:
May 24, 2021
Dean v. Biggs & Greenslade: FDCPA Claims Ordered to Arbitration by Texas Court
A FDCPA litigant failed to provide sufficient evidence to challenge the arbitration agreement contained in her promissory note, and so the court ordered the case to arbitration.
Continue reading the summary here.
Kareem v. PHH: Letter Potentially Misleading Under FDCPA
In this case, the consumer’s mortgage payments were rejected because they did not make his mortgage up to date. The mortgage company started foreclosure proceedings. In response, the consumer claimed that the letter received from the mortgage company was confusing because it stated his next payment due date. The court allowed the consumer’s request to amend his complaint and dismissed mortgage company’s motion to dismiss as moot.
Continue reading the summary here.
Wilson v. Wells Fargo Bank: No Private Right of Action for Furnisher's Failure to Report Accurate Information
The court found that because the consumer did not demonstrate that the bank received a notice of a dispute from the CRA, she failed to establish the second prong of a claim under Section 1681s–2(b) of the FCRA.
Continue reading the summary here.
May 25, 2021
Brown v. Dynamic Recovery: Court Finds It Unclear If Debt Purchaser Acquired Right to Compel Arbitration
In this case, the consumer’s debt was purchased several times before it was reduced to judgment. The consumer received conflicting collection letters and sued. In response, the debt purchaser moved to compel arbitration. The court held that it was unclear if the debt purchaser retained the right to compel arbitration.
Continue reading the summary here.
Schultz v. Credit Control: Court Finds FDCPA Plaintiff Must Either Approve Settlement or Seek Leave to Vacate
The court was not inclined to renegotiate a settlement agreement that had already been executed. Instead, it required the plaintiff to either move for preliminary approval of the agreement or seek leave to vacate it.
Continue reading the summary here.
Preisler v. Eastpoint: Court Finds FDCPA Claimant Lacks Standing
FDCPA is intended to function as a shield to protect debtors from unethical and illegal debt collectors; it is not a sword to be wielded to force defendants to pay plaintiffs who have not suffered.
Continue reading the summary here.
May 26, 2021
Lenzini v. DCM: Validation Letter Clearly States Current Creditor
Consumer claimed validation letter was confusing as to the current creditor to whom she owed the debt. Court found that validation letter did clearly state the name of the current creditor and dismissed consumer’s FDCPA claims.
Continue reading the summary here.
Court Finds Text Messages Fall Under the TCPA
The court adopted the 1st Circuit’s reasoning and reiterated is prior ruling that “text messages fall within the ambit of the TCPA.”
Continue reading the summary here.
Sadon v. AR Resources: Court Dismisses FDCPA Claim as Outside Reasonable Scope
Debt collector prevails on FDCPA claim when court finds the least sophisticated consumer could be expected to connect the dots on a collection letter that lists the name of the creditor next to an outstanding balance.
Continue reading the summary here.
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