FTC and CFPB File Amicus Brief in SCOTUS urging Reversal of 10th Circuit’s Marx Decision Holding that Prevailing Debt Collector Under FDCPA Need Not Establish Bad Faith in Order to Recover Costs

The CFPB’s and FTC’s amicus brief urges the Supreme Court to overturn the Marx decision of the U.S. Court of Appeals for the Tenth Circuit, where Ms. Marx sued General Revenue Corporation under the FDCPA.  Marx lost.  The 10th Circuit ruled that Marx was responsible for paying more than $4,500 to cover the debt collector’s litigation costs, even though she had brought the case in good faith. The amicus brief argues that the 10th Circuit’s decision was inconsistent with the terms of the Fair Debt Collection Practices Act, which specifies that consumers who win lawsuits against debt collectors may recover their litigation costs from the defendants, but that consumers who lose these cases must pay defendants’ litigation costs only if the consumers sued in bad faith or for purposes of harassment.  The amicus brief also argues that these provisions of the Act advance Congress’ intent to help consumers deter abusive debt collection practices by bringing private enforcement actions in good faith. The amicus Brief can be found here.