Daily Decision Recap: TILA, Letter Vendor Cases and More

A summary of recent top FCRA, TCPA and FDCPA cases from ACA. Editor’s note: This article is available for members only.

07/08/2022 10:15 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 6 – July 8:

July 6:

Nickels v. Scott Credit Union: Court Denied Credit Union’s Motion for Summary Judgment

A furnisher’s duties of investigation under the FCRA vary depending on the facts alleged by a consumer and is a question for the jury. Where a consumer alleged fraud or identity theft, the court found a jury had to decide whether the investigation conducted by a credit union was reasonably sufficient.

Continue reading the summary here.

Hammack v. PHH Mortgage Corporation: Court Finds Foreclosure Attorney is a Debt Collector Under the FDCPA

A consumer received notice that her reverse mortgage was in foreclosure. The consumer claimed that she had kept her taxes and insurance paid and had not defaulted on the loan. She retained an attorney who disputed the debt with the foreclosure attorney and provided the consumer’s information. The debt was not verified, and the loan servicer claimed they could not do so without more information. The consumer sued the foreclosure attorney for violating the FDPCA.

Continue reading the summary here.

Lamirand v. Fay Servicing: 11th Circuit Finds TILA Notice with Debt Collection Language is a “Communication” Under the FDCPA

The 11th Circuit once gain held that monthly mortgage statements required by TILA can constitute communications under the FDCPA if they contain debt collection language that is not required by TILA or its regulations.

Continue reading the summary here.

July 7:

Sims v. Kahrs Law Offices: Court Finds Making an Unredacted Loan Agreement Public Record is an Injury-in-Fact

A consumer alleged that she never completed her loan application or received funds, but four years later a debt collector sued her in court to recover roughly $4,000. The consumer sued the collection attorney for violating the FDPCA, and the collection attorney moved to stay discovery while his motion to dismiss is pending.

Continue reading the summary here.

Steinmetz v. Financial Recovery Services: Consumer Lacked Standing for FDCPA Claims

A court found a consumer’s allegations that he was concerned and confused by a collection letter, relied on the contents of the letter, and suffered emotional harm, were conclusory allegations that were insufficient to support standing, and failed to show how the defendants’ alleged misrepresentations caused the plaintiff to suffer a concrete and particularized harm.

Continue reading the summary here.

Shockley v. Clarity Services: CRA Had Permissible Purpose to Furnish Consumer Reports to Lenders

A Wisconsin district court held that a CRA only needed to have a reasonable belief that a lender intended to use a consumer report for a permissible purpose.

Continue reading the summary here.

July 8:

Glick v. CMRE Financial: Collection Agency Wins Dismissal of Letter Vendor Case

The court found that a collection agency’s transmission of information to a third-party letter vendor or commercial mail house was not sufficiently analogous to an invasion of privacy and did not involve the level of publication of the consumer’s private information necessary to constitute a concrete injury-in-fact.

Continue reading the summary here.

James v. Puget Sound Collections: Court Finds No Assignment of FDCPA Claims

A Washington district court found a plaintiff lacked standing to bring FDCPA claims that were assigned to him by the consumer who was the actual subject of the collection activity at issue.

Continue reading the summary here.

Dunn v. Enhanced Recovery Company: Court Remands Letter Vendor Case to State Court

Two consumers sued a debt collector in state court for providing information about their debt to a letter vendor in state court. The debt collector removed the issue to federal court, and the consumer then moved to have the case remanded for lack of standing.

Continue reading the summary here.

Visit the Industry Advancement Fund webpage for more Daily Decision recaps and compliance resources.

If you’ve recently obtained a judicial opinion that might benefit other ACA members, email it to us: [email protected].

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