Debt Collectors Win Lawsuit Alleging Violation of Fair Debt Collection Practices Act.

In Webb et al. v. Midland Credit Management, Inc. et al., the federal District Court for the Northern District of Illinois held that a plaintiff cannot state a claim under the Fair Debt Collection Practices Act (“FDCPA”) by simply alleging that a debt collector sent a letter to the debtor seeking to collect a greater dollar amount than it latter sought to collect in a lawsuit.  According to the court, the plaintiffs failed to sufficiently allege that the debt collector’s action was false, deceptive, or misleading.

The plaintiffs in Webb brought a class action lawsuit alleging violation of the FDCPA by two debt collectors and their parent company.  According to the complaint, the  debt collectors’ attempted to collect debts from the plaintiffs by sending collection letters demanding more than the debt collectors ultimately sued to collect in a latter lawsuit.  The plaintiffs alleged that, by sending collection letters that “inflat[ed] the amount of the claimed debt,” the defendants violated the FDCPA.

The court ruled in favor of the debt collectors and dismissed the plaintiffs’ claims.  According to the court, plaintiffs did not adequately allege that the “inflated” amount was false, deceptive, or misleading.  The court refused to assume that the debt collectors did not have a valid basis for seeking the higher amounts in the pre-suit letters.  To read the court’s opinion, click this link – Webb v Midland Credit Management Inc.

The business and consumer fraud attorneys at DeBlasio & Donnell LLC have the experience necessary to pursue class action claims.  To schedule an appointment to speak with one of our attorneys, call us Toll Free at (877) 646-9245 or contact us via our website at http://dd-lawfirm.com/contact.php.

 DISCLAIMER: This blog post is not legal advice and should not be relied on by anyone as legal advice in their particular situation.  Furthermore, while DeBlasio & Donnell LLC welcomes communications via its website, please be aware that communicating any information to DeBlasio & Donnell LLC or any of its attorneys through its web site or via any other method without a formal engagement with the Firm does not constitute or create an attorney-client relationship between you (or any other users, senders or recipients) and DeBlasio & Donnell LLC or any of its attorneys.  For your protection, please do not send us confidential information until you have spoken with one of our lawyers and received authorization to send that information to our Firm.  Thank you.