Supreme Court resolves conflict and holds that a purchaser of defaulted debt is not…

The Supreme Court in Henson v. Santander Consumer USA Inc., No. 16-349 (June 12, 2017) resolved a conflict among various circuits as to whether a person who buys debt is a “debt collector” under the FDCPA. The Court sided with the Fourth Circuit in holding that by buying debt that…

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U.S. Supreme Court holds that a debt collector who files a time-barred proof of…

A debt collector who files a time-barred proof of claim is not engaging in false or deceptive conduct as defined by the FDCPA, according to a recent decision by the US Supreme Court. In Midland Funding, LLC v. Johnson, 16-348, (May 15, 2017) the debtor filed a Chapter 13 Bankruptcy…

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Eleventh Circuit gives its “stamp of approval” to a bankruptcy disclaimer contained in a…

The Eleventh Circuit in Helman v. Bank of America, 15-13672, – Fed. Appx.– (11th Cir. April 12, 2017) concluded that the least sophisticated consumer would not be misled that it was personally liable for a discharged debt where the monthly statements sent by the debtor’s bank contained a statement that…

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Illinois court holds that the foreclosure of real estate is not an attempt to…

U.S. District Court for the Northern District of Illinois held in Hahn v. Anselmo Lindberg Oliver LLC, 1:16-cv-06908 (Mar. 3, 2017) that the foreclosure of real estate is not an attempt to collect a debt under the FDCPA and a law firm that proceeds with foreclosure despite a pending bankruptcy…

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Action on a deficiency judgment not an action on a debt under Florida Collection…

In Dyck O’Neal, Inc. v. Ward, No. 2D15-2989 (Fla. Dist. Ct. App. Jan. 27, 2017) a Florida Appellate court found that a creditor need not comply with Section 559.715 of the Florida Consumer Collection Practices Act (FCCPA) when attempting to enforce a final foreclosure judgment. In this case, after the…

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Credit reporting (regardless of error) and other servicing tasks were not attempts to collect…

In Green v. Specialized Loan Servicing, LLC, No. 15-CV-513-JDP (W.D. Wis. Jan. 18, 2017) the court granted summary judgment on Plaintiff’s FDCPA claims because, despite the fact that some of the communications contained errors, including that Plaintiffs’ were past due on their loans, the purpose of the communications were not…

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Virginia District Court finds that communication is not an attempt to collect a debt…

A federal court in Virginia held in Lovegrove v. Brock & Scott, PLLC, No. 2:16CV418 (E.D. Va. Jan. 17, 2017) that a Plaintiff’s knowledge of his bankruptcy discharge was critical in determining whether a communication from a debt collector was an attempt to collect a debt under the FDCPA. In…

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New York court holds that notifying discharged debtor that hazard insurance lapsed not debt…

Notices sent by loan server advising mortgagor who was discharged in Bankruptcy, and that she we would be responsible for the costs of replacement coverage, were not attempts to collect a debt under the FDCPA. In Burns v. Seterus, Inc., No. 16-CV-06638 (W.D.N.Y. Jan. 11, 2017) the mortgage servicer sent…

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Florida federal court rejects debt collection claim based on time-barred debt

The Plaintiff in Garrison v. Caliber Home Loans, Inc., No. 616CV978ORL37DCI (M.D. Fla. Jan. 10, 2017) alleged that her mortgage loan servicer violated the FDCPA and the Florida collection practices act by, among other things, attempting to collect a debt the servicer knew was time-barred. The court held that the…

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Risk that plaintiff may pay an unauthorized fee pure conjecture defeating Article III standing

Plaintiff’s FDCPA complaint in Benali v. AFNI, Inc., No. CV 15-3605-BRM-DEA (D.N.J. Jan. 4, 2017) asserted two causes of action: a violation of § 1692e by including in a collection letter a false and deceptive reference to a processing fee for payments made electronically and a violation of § 1692f(1)…

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