FDCPA (Fed & State)

In Abdollahzadeh v. Mandarich Law Grp., LLP, No. 18-1904, 2019 U.S. App. LEXIS 12887, at *2-3 (7th Cir. Apr. 29, 2019), the Court of Appeals for the Seventh Circuit found that a collection attorney could rely on its client's information under the bona fide error rule. Abdollahzadeh challenges that ruling on several grounds. First, he argues that Mandarich's continuation of… Read More

In Mueller v. I.C. Sys., No. 18-CV-336 (AMD) (RML), 2019 U.S. Dist. LEXIS 70342, at *4-5 (E.D.N.Y. Apr. 25, 2019), Judge Donnelly let an FDCPA case past the pleadings stage. While the plaintiff's contract with Liberty Power does include a check box describing the "customer" as a "corporation," the plaintiff asserts that his intent in signing the contract was to… Read More

In Greene v. Fay Servicing, LLC, No. 19-cv-01073-JSC, 2019 U.S. Dist. LEXIS 68107, at *7-9 (N.D. Cal. Apr. 22, 2019), Judge Green remanded a Rosenthal Act claim for absence of federal jurisdiction. Defendants' notice of removal asserts that federal jurisdiction exists because the second cause [*8]  of action under the RFDCPA references violations of the Fair Debt Collections Practices Act ("FDCPA"),… Read More

One of the things that we do for our industry is gauge the loudness of the volume of various issues in an attempt to predict trends.  Advocacy groups' coordinated efforts typically result in the volume of issues being turned up across social media and in the press. As the industry awaits new rules on debt collection from the CFPB, we've noticed… Read More

In Neal v. Am. Educ. Servs., No. 2:18-cv-01784-KJN (PS), 2019 U.S. Dist. LEXIS 66584 (E.D. Cal. Apr. 18, 2019), Magistrate Judge Newman granted summary judgment against an FDCPA Plaintiff. Plaintiff argues that defendant is a debt collector because defendant "claim[s] to be in service of this [*13]  debt." (ECF No. 1-1 at 7.) However, this is not the appropriate legal standard… Read More

In Boucher v. Fin. Sys. of Green Bay, No. 17-C-132, 2019 U.S. Dist. LEXIS 61026 (E.D. Wis. Apr. 9, 2019), Judge Griesbach denied class certification in FDCPA dunning letter case because of de minimum recovery that the putative class members would receive.  The settlement would have resulted in about $1 per class member. Still, the Seventh Circuit has never said… Read More

In Brown v. I.C. Sys., No. 16 C 9784, 2019 U.S. Dist. LEXIS 45384 (N.D. Ill. Mar. 20, 2019), Judge Alonso denied a debt collector’s summary judgment motion, first finding that the call pattern created a question of fact. Defendant argues that its recordings of connected calls show that plaintiff never told defendant to stop calling; on the few occasions… Read More

In Obduskey v. McCarthy & Holthus, LLP, the SCOTUS issued its opinion finding that a law firm engaged in non-judicial foreclosure was not a “debt collector” under the FDCPA.  We post below from the SCOTUS’ syllabus. Law firm McCarthy & Holthus LLP was hired to carry out a nonjudicial foreclosure on a Colorado home owned by petitioner Dennis Obdus- key. McCarthy sent… Read More

In Frank v. Gaos, the SCOTUS today placed further standing impediments to privacy and other purely statutory/no damages class actions, finding, following objections to the class action settlement, that the case should be remanded to determine standing under Spokeo.  The background facts were as follows: Three named plaintiffs brought class action claims against Google for alleged violations of the Stored Communications Act.… Read More

In Francisco v. Midland Funding, LLC, No. 17 C 6872, 2019 U.S. Dist. LEXIS 42349 (N.D. Ill. Mar. 15, 2019), Judge Lefkow held that unclean hands are not an affirmative defense to an FDCPA section 1692e(8) claim even where the debtor’s attorney allegedly timed the dispute letter to coincide with the debt collector’s bi-monthly credit reporting. Because the unclean hands defense… Read More

In Kolbasyuk v. Capital Mgmt. Servs., LP, No. 18-1260-cv, 2019 U.S. App. LEXIS 7204 (2d Cir. Mar. 12, 2019), the Court of Appeals for the Second Circuit affirmed judgment in favor of a debt collector as to the manner in which the collector stated the amount of the debt in its debt validation letters. Plaintiff-Appellant Yuri Kolbasyuk received a debt… Read More

In Gomes v. Portfolio Recovery Assocs., LLC, No. 18-21872-CIV, 2019 U.S. Dist. LEXIS 32116 (S.D. Fla. Feb. 28, 2019), Judge Altonaga denied class certification in an FDCPA class action. Defendant asserts the damages component of the case will require examination of individualized issues. According to Defendant, Plaintiff and each class member will necessarily have the burden of proving Defendant's collection… Read More

In Barbato v. Greystone All., No. 18-1042, 2019 U.S. App. LEXIS 5336 (3d Cir. Feb. 22, 2019), the Court of Appeals for the Third Circuit imposed vicarious FDCPA liability on a debt buyer who outsourced its debt collection activities.  The appeal is concerned whether an entity that acquires debt for the "purpose of . . . collection" but outsources the… Read More

In Sanders v. LoanCare LLC, No. 18-CV-09376, 2019 U.S. Dist. LEXIS 20900, at *2-3 (C.D. Cal. Feb. 1, 2019), Judge Otero addressed, albeit in a mortgage situation, whether the collection of an online payment fee during a 10-day grace period triggered the Rosenthal Act.  The facts were as follows: In February 2018, Plaintiff received a Notice of Service Transfer ("Notice")… Read More

In McCray v. Deitsch & Wright, No. 8:18-cv-731-EAK-SPF, 2019 U.S. Dist. LEXIS 23516 (M.D. Fla. Feb. 11, 2019), Judge Kovachevisch found that a 30-day validation letter overshadowed the debtor’s validation rights by including language stating that “Be advised if we do not receive payment promptly we will be forced to take additional action to recover the subject amounts.” After a… Read More

In Gutierrez v. Portfolio Recovery Assocs., No. CV 18-9890 DSF (RAOx), 2019 U.S. Dist. LEXIS 18553 (C.D. Cal. Feb. 1, 2019), Judge Fischer said that a debt collector does not bear exposure to a private FDCPA litigant when the debt collector acts pursuant to a consent decree with the CFPB. The most persuasive argument is that because a consent decree… Read More

In Izett v. Crown Asset Management, LLC., 2018 WL 6592442, at *4–5 (N.D.Cal., 2018), Judge Chen refused to strike an affirmative defense related to an FDCPA allegation that a CCP 98 declaration in the underlying state court debt collection action allegedly was false. Defendants' seventeenth affirmative defense asserts: “A debt collector does not make misrepresentations in violation of [the FDCPA]… Read More

In Solberg v. Victim Services, Inc, dba Corrective Solutions, 2018 WL 6567072 (N.D.Cal., 2018), Judge Chhabria certified an FDCPA class, but declined to award injunctive relief under the UCL because the putative class was unlikely to be the subject of further collection activity. The plaintiffs also seek restitutionary and injunctive relief under the UCL. As an initial matter, the plaintiffs… Read More

In Alarcon v. Vital Recovery Services, Inc., 2018 WL 6266558, at *4 (S.D.Cal., 2018), Judge Burns granted summary judgment under the FDCPA in favor of a debt collector who collected, by non-judicial means, on a debt that previously had been adjudicated in favor of the debtor. The question presented in this case is whether that ruling in favor of Alarcon in… Read More

In Ocampo v. GC Services Ltd. Partnership, Case No. 16-CV-9388, 2018 WL 6198464 (N.D.Ill. Nov. 28, 2018), Judge Dow found a class representative to be improper.  But, in the class certification analysis, Judge Dow found that the type of debt involved did not involve individual inquiries sufficient to defeat class certification. With respect to the first argument, even though some… Read More