In Tu v. Camino Real Chevrolet, 2013 WL 140278 (C.D.Cal. 2013), Judge Otis Wright III held that an automobile finance company is not a ‘debt collector’ under the FDCPA. Westlake is in the business of taking assignment of retail installment sales contracts from automobile dealers. (Mot. at 2.) It then becomes the holder in due course of those contracts. The… Read More
In McQueen v. American Exp. Centurion Bank, 2012 WL 5301075 (N.D.Cal. 2012), Judge James dismissed a Plaintiff's FDCPA claim on a Rule 12(b)(6) motion because the defendant was a creditor, exempt from the FDCPA. The FDCPA defines “creditor” as “any person who offers or extends credit creating a debt or to whom a debt is owed.” 15 U.S.C. § 1692a(4). The… Read More
In Gutierrez v. State Farm Mut. Ins. Co., 2012 WL 4902888 (N.D.Cal. 2012), Judge Davila found that an automobile finance company was not a ‘debt collector” within the meaning of the FDCPA. The facts were as follows: Plaintiffs are husband and wife. See FAC, Docket Item No. 38, at ¶ 2. At some point prior to July, 31,… Read More
In Meyer v. Santander Consumer USA, 2012 WL 3528117 (E.D.Cal. 2012), Judge Hollows held that an automobile finance company was a ‘creditor’ and not a ‘debt collector’ under the FDCPA. Judge Hollows found no difference that the finance company had purchased the portfolio of the Plaintiff’s original creditor. Here, Santander has produced substantial evidence that it was plaintiff's creditor as… Read More
In Smith v. Capital One Financial Corp. 2012 WL 1669347 (N.D.Cal. 2012), Judge Hamilton held that an FDCPA claim and common law invasion of privacy claim would not lie against a credit card company collecting its own obligations. However, a company that extends a consumer credit line (e.g., a credit card company) is in the business of extending credit, not the… Read More
In Cruz v. International Collection Corp., --- F.3d ----, 2012 WL 742337 (9th Cir. 2012), the Court of Appeals for the Ninth Circuit found that a debt collector violated the FDCPA by seeking costs and interest that were not allowed under state law. The Court of Appeals explained: Under Nevada law, a debt collector may not collect any interest or fees unless… Read More
In Munekiyo v. Capital One Bank, N.A., 2011 WL 6057830 (C.D.Cal. 2011), Judge Snyder addressed Capital One’s use of a debt collection agency to service defaulted accounts, and potential deception in correspondence from Capital One that resulted in the consumer dealing with the third party debt collector. Plaintiff filed a class action alleging that Plaintiff maintained a credit card account… Read More
In Shapiro v. Professional Collection Consultants, 2011 WL 4500114 (C.D.Cal. 2011), Judge Wright discussed the pleading standards necessary to state a claim against a debt collector’s principal/owner liable for the actions of the business: With respect to Hopp, the parties dispute as to whether Hopp can be held liable pursuant to the FDCPA as PCC's owner. District courts have… Read More
In Weakley v. Redline Recovery Services, LLC, --- F.Supp.2d ----, 2010 WL 2787656 (S.D.Cal. 2010), Judge Benitez allowed claims to proceed past the pleadings stage under the FDCPA and Rosenthal Act against a debt collection agency’s individual employees, explaining: First, it is necessary for the Court to determine whether the term “debt collector” applies to the individual Defendants as… Read More
In Pickering v. Coast Center for Orthopedic Arthroscopic Surgery, 2009 WL 932629 (2009), the California Court of Appeal for the Fourth District, in an unpublished decision, reviewed a jury’s finding that an orthopedic doctor’s group was liable under the FDCPA notwithstanding its status as a creditor. The Court of Appeal affirmed the jury’s finding that the doctor’s group’s retention of… Read More
