A summary of recent top FCRA, TCPA and FDCPA cases from ACA. Editor’s note: This article is available for members only.
9/3/2021 11:30
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 August 31 – September 3:
August 31
Rodriguez-Ocasio v. Midland: Arbitration Clause Did Not Transfer to Debt Buyer and Affiliates
The consumers filed a class action claiming the debt collector’s initial communication did not include all required language. The debt collector attempted to compel arbitration based on the consumers’ agreement with original creditor.
Continue reading the summary here.
Oh v. Collecto: No Harm from Unopened Letter
A New Jersey district C=court granted the debt collector’s motion for summary judgment, finding the consumer couldn’t have suffered any concrete harm from an allegedly misleading statement in a collection letter she never opened.
Continue reading the summary here.
Raymond v. Arcadia Recovery: Collector Wins Dismissal of FDCPA Claims
A court determined that a consumer represented by an attorney is not imputed from a creditor to its collector. Because the consumer did not allege the collector had actual knowledge that the consumer was represented by an attorney, the court dismissed the Fair Debt Collection Practices Act claims without prejudice.
Continue reading the summary here.
September 1
Montijo v. Hrdlicka: “Hold Over Rent” Not a Debt Subject to FDCPA
The consumers were involved in an unlawful detainer case. After the initial case was adjudicated with no monetary award given to the landlord, the landlord’s attorney pursued a judgment against the consumers for a monetary award. The consumers had the judgment vacated and sued the attorney for violation of the Fair Debt Collection Practices Act.
Continue reading the summary here.
Mayfield v. Portfolio Recovery Assoc.: Consumer Wins Partial SJ in FDCPA Case Based on Improper Summons
A district court granted partial summary judgment for a consumer who alleged a collector violated the Fair Debt Collection Practices Act at Sec. 1692e(5) because the improper summons invalidly threatened suit. Editor's note: This is an archived Daily Decision.
Continue reading the summary here.
Fernandez v. Great Lakes: Reporting Closed Account with Zero Balance and Past Due Was Not Misleading
The district court granted the student loan servicer’s motion for summary judgment, finding that reporting the terms of a closed account with a zero balance, yet with the pay status listed as past due was not “patently incorrect” or “misleading.
Continue reading the summary here.
September 2
Tehrani v. Joie De Vivre Hospitality: Number Generator Must Create Numbers to Be an ATDS
A California district court rejected the consumer’s overbroad definition of an automatic telephone dialing system (ATDS), finding that in order to be an ATDS, the equipment must actually generate the number to be called as opposed to merely dialing numbers from a database of numbers.
Continue reading the summary here.
Wadsworth v. Kross: 7th Circuit Finds No Standing, Ends FDCPA Action
The 7th Circuit reversed an Illinois decision granting summary judgment for a consumer's Fair Debt Collection Practices Act claims. Instead, the 7th Circuit held the consumer’s claims of emotional harm without financial harm failed to sufficiently allege an injury-in-fact, reversed the judgment and instructed the district court to dismiss the complaint.
Continue reading the summary here.
Breedlove v. Santander: Creditor Impliedly Waives Arbitration Rights
The consumer’s auto loan was discharged in bankruptcy and the creditor pulled the consumer’s credit report. The consumer filed a class-action lawsuit against the creditor for a Fair Credit Reporting Act violation. After seven months of litigation, the creditor attempted to assert arbitration rights. The court found the creditor had waived its arbitration rights by its actions.
Continue reading the summary here.
September 3
Roeder v. Collection Bureau: S.D.N.Y Rejects Creasy, Holds Plaintiff Has Standing
The Southern District of New York Court held that the U.S. Supreme Court’s decision in Barr v. AAPC severing the unconstitutional exemption for government debt collectors left intact the remainder of the Telephone Consumer Protection Act during the time period at issue, meaning the plaintiff had Article III standing to raise his claim under 47 U.S.C. Section 227(b)(1)(A)(iii).
Continue reading the summary here.
Brown v. Weltman, Weinberg & Reis: Collection Letter Attempting to Collect Expired Judgment Potentially Violates FDCPA
The consumer received a collection letter on a debt that had been reduced to a judgment. The judgment was one year beyond the statute of limitations for judgments. The consumer alleged the letter was misleading because it did not state the debt was too old to sue or credit report. The debt collector moved to dismiss the case for lack of standing.
Continue reading the summary here.
Tucker v. Transunion: Reporting Transferred Account as Past Due with Zero Balance Not Misleading
The Oregon district court found that “reporting an account status that reflects historical past due payments is not inaccurate or misleading."
Continue reading the summary here.
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