In Gonzalez v. FMS, Inc., 2015 WL 4100292 (N.D.Ill., 2015), Judge Castillo dismissed an FDPCA claim premised on the debtor's account numbers being visible on envelope in which the dunning letter was sent. Considering Section 1692f(8) in context and in light of the purposes of the FDCPA, it is clear to this Court that the provision was only intended to prohibit… Read More
In Jensen v. Pressler & Pressler, 2015 WL 3953754, at *1 (C.A.3 (N.J.),2015), the Court of Appeals for the Third Circuit held that the FDCPA's prohibition against false statements requires materiality, and that such standard is baked into the "least sophisticated consumer" rule. The facts were as follows. Paula Jensen defaulted on a Bank of America credit card, and her debt… Read More
In Herrera v. AllianceOne Receivable Management, Inc., 2015 WL 3796123, at *1 (S.D.Cal.,2015), Judge Moskowitz found that a debt collector's collection of traffic fines from the wrong person were not protected by the litigation privilege, but were not subject to the Rosenthal Act. Defendant was assigned to collect several unpaid traffic fines by the San Diego County Superior Court assessed against Gilberto… Read More
In Finley v. Dynamic Recovery Solutions LLC, 2015 WL 3750140 (N.D. Cal. 2015), Judge Henderson denied Defendant’s summary judgment motion as to Plaintiff’s claim that the Defendant violated the FDCPA for collecting on out-of-statute debt. The Ninth Circuit has not yet determined whether a threat of litigation is required for such a debt collection letter to be actionable. Two cases… Read More
In Provo v. Rady Children's Hospital-San Diego, 2015 WL 3648845, at *2-3 (S.D.Cal.,2015), Judge Miller granted in part and denied in part a debt collector's motion to dismiss an FDCPA plaintiff's claim based on collection of a medical debt. Judge Miller found that the letter did not unlawfully seek to collect prejudgment interest without a judgment. Plaintiffs contend that a debt… Read More
In Montgomery v. GCFS, Inc., 2015 WL 3653314, at *1-2 (Cal.App. 1 Dist., 2015), the Court of Appeal affirmed dismissal of a Rosenthal Act claim premised on an alleged prohibition against assignment of a debt from a CFL holder to an unlicensed entity. I've changed the order of the opinion somewhat for brevity here; but, the facts were as follows: In… Read More
In Klein v. Law Offices of D. Scott Carruthers, 2015 WL 3626946, at *5 (N.D.Cal. 2015), Judge Breyer was called on to address a Plaintiff's counsel's request for attorneys' fees under the Rosenthal Act. Plaintiff's counsel sought discovery of defense counsel's billing records to support Plaintiff's counsel's fee application and to refute the Defense counsel's argument that the Plaintiff's counsel's… Read More
In Jacobson v. Persolve, LLC, No. 14-CV-00735-LHK, 2015 WL 3523696, at *10 (N.D. Cal. June 4, 2015), Judge Koh granted, in part, class certification in an FDCPA class action despite the fact that the FDCPA's $500,000 penalty cap would result in deminimus recover to the large number of individual class members. In opposition, Defendants do not dispute that individual class members… Read More
In Sears v. Baretta Fin., No. 7:14CV00036, 2015 WL 3507694, at *3 (W.D. Va. June 3, 2015), Judge Conrad found that a debt collection agency's letter mentioning a "caption" and "case number" when no lawsuit had been filed violated the FDCPA. According to the complaint, Baretta Financial “regularly collects or attempts to collect, directly or indirectly, debts owed or due or… Read More
In Camacho v. Jefferson Capital Sys., LLC, 2015 WL 3454070, at *3-4 (N.D. Cal. 2015), Judge Freeman rejected a debt collector's contention that the words used by the debtor's counsel did not convey that the debtor was represented by counsel. Under both the FDCPA and Rosenthal Act, a debt collector may not directly communicate with an individual debtor in connection… Read More
In Madden v. Midland Funding, LLC, --- F.3d ----, 2015 WL 2435657 (2d Cir. 2015), the Court of Appeals for the Second Circuit found that the NBA did not pre-empt New York state usury claim arising out of debt collector’s attempt to collect the credit card issuer’s interest that was permissible as to the credit card issuer out of Delaware… Read More
In Altman v. J.C. Christensen & Associates, Inc., 2015 WL 2242398--- F.3d ---- (2d Cir. 2015), the Court of Appeals for the Second Circuit found no FDCPA violation for failing to advise a debtor that a settlement resulting in debt relief to the debtor would result in tax consequences. Altman argues that, by specifying the savings that he would enjoy… Read More
In Diaz v. Kubler Corp, 2015 WL 2214634, -- F.3d. – (9th Cir. 2015), the Court of Appeals for the Ninth Circuit found that a debt collector’s dunning letter did not violate the FDCPA/Rosenthal Act by seeking collection of statutory pre-judgment interest in addition to the liquidated debt. It is quite plain that Kubler would have been entitled to prejudgment… Read More
In Cutler ex rel. Jay v. Sallie Mae, Inc., 2015 WL 1909482 (C.D. Cal. 2015), Judge Fitzgerald found that the FDCPA’s “continuing violation” doctrine did not apply to exempt a Plaintiff’s FDCPA claims from the FDCPA’s 1-year statute of limitations. Determining whether the statute of limitations bars a FDCPA and/or RFDCPA claim depends on an analysis of the type of… Read More
In Bartell v. National Collegiate Student Loan Trust 2005-3, 2015 WL 1907337 (N.D. Cal. 2015), Judge Seeborg found that an FDCPA plaintiff stated a claim against the debt collectors. On September 19, 2013, Bartell received a telephone voice message including neither the caller’s identity nor a clear indication of the caller’s purpose. Upon tracing the number, she discovered the call… Read More
In Spokeo v. Robins,742 F.3d 409 (9th Cir. 2013), the Court of Appeals for the Ninth Circuit found that FCRA itself provided Article III standing, even if the Plaintiff could prove no actual damage. Spokeo contends, however, that Robins cannot sue under the FCRA without showing actual harm. But the statutory cause of action does not require a showing of… Read More
In Roadhouse v. Patenaude & Felix, A.P.C. , 2015 WL 1691885 (D.Nev. 2015), Judge Navarro denied a debt collector’s Motion for Summary Judgment based on the bona-fide error defense because the debt collector continued to prosecute the underlying debt collection lawsuit despite knowledge provided by the debtor that the statute of limitations had run on the obligation. Defendant asserts that… Read More
In Rhodes v. Olson Associates, P.C., --- F.Supp.3d ----, 2015 WL 1136176 (D.Colo. 2015), Judge Arguello recognized that the FDCPA’s $500,000 liability cap in class actions would reduce the per-classmember’s potential recovery to less than $1,000 in an individual case. But, Judge Arguello found that this fact did not make the class action devise not the superior way of adjudicating… Read More
In Alborzian v. JPMorgan Chase Bank, N.A., --- Cal.Rptr.3d ----, 2015 WL 1114426 (Cal.App. 2 Dist. 2015), the California Court of Appeal addressed whether a sold-out junior mortgage holder violated the FDCPA/Rosenthal Act by collecting on the debt post-foreclosure by the senior. A lender who lends money used to purchase a parcel of property and who holds a junior lien on that… Read More
In Gold v. Midland Credit Management, Inc., --- F.Supp.3d ----, 2015 WL 1037700 (N.D.Cal. 2015), Judge Freeman granted summary judgment to a credit buyer and it’s debt collection agency, and struck Plaintiff’s expert on credit reporting to the extent he attempted to opine on debt collection issues. Judge Freeman found expert Evan Hendricks unqualified to testify about debt collection issues.… Read More
