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Financial Services Law Insights and Observations

District Court says letter’s disclosure did not violate FDCPA

Courts FDCPA Debt Collection

Courts

On January 14, the U.S. District Court for the Western District of Pennsylvania entered judgment in favor of a defendant debt collector accused of violating the FDCPA in a consolidated action concerning disclosure language used in a letter sent to the plaintiffs. The plaintiffs, who had previously been sued by the defendant, hired an attorney who sent a letter to the defendant requesting additional information about the plaintiffs’ debts. The defendant responded and included in its letter a disclosure that stated, “This communication is from a debt collector but is not an attempt to collect a debt. Notice: See Reverse Side for Important Information.” The plaintiffs sued, claiming that the disclosure was a “‘false representation or deceptive means’ used to collect a debt in violation of 15 U.S.C. § 1692e(10)” because “the letter was, indeed, an attempt to collect a debt.” The court disagreed. The court held that “[t]he letters do not demand payment, offer alternatives to default, or request financial information,” and noted that “[i]n fact, the letters make no request of any kind from the debtors,” and that“[t]he letters contain contact information, but do not offer any means of making payment on the alleged debt and expressly disclaim that the letter is an ‘attempt to collect a debt.’” Moreover, the court found that because the defendant’s letter was sent in response to a request from the plaintiffs’ attorney, it could not be considered an attempt to collect a debt. In addition, the court ruled that two new theories put forward in plaintiffs’ summary judgment were procedurally barred.