FDCPA 1692e Unending cycle of Duns and Debt Validation

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www.michbar.org/consumer/pdfs/ap08.pdf

 

15 USC 1692e(8) specifi cally provides that it is

a violation to communicate “to any person credit information

which is known or which should be known to be false,

including the failure to communicate that a disputed debt

is disputed.”

 

Magrin v Unifund CCR Partners, Inc 9th Circuit

 

Under 15 U.S.C. § 1692e, a debt collector violates

the Act if it uses “any false, deceptive, or misleading

representation or means in connection with the collection

of any debt.” This prohibition includes false representations

as to “the character, amount, or legal status of any debt.”

15 U.S.C. § 1692e(1)(A).

 

Thus, a consumer states a valid claim for relief under

the Act when he alleges that a debt collector has made

false representations as to the legal status of a debt

in connection with the sale, transfer or assignment of

a debt to another debt collector, with the knowledge

that the purchaser, transferee or assignee intends to

initiate or continue at tempts to collect the debt.

 

Burdick v Palisades Collection LLC

 

The court denied LVNV’s

motion to dismiss the FDCPA claim, holding that the consumer

stated a claim against LVNV because the debt collector “failed

to disclose that the debt was disputed when it assigned the account

to other debt collectors and sold the debt.

 

Kinel v Sherman Acquisition II, LP,

 

 The court refused to dismiss the FDCPA claims against Wolpoff

& Abramson, LLP, (W&A), one of the nation’s largest debt

collector law firms. It held that a jury could reasonably find

that W&A’s communications to the Sherman defendants were

false or deceptive by virtue of its failure to state that consumer’s

debt was disputed.