District Court grants defendant’s judgment in FDCPA suit over dispute response

Courts North Carolina State Issues FDCPA Debt Collection Consumer Finance

On June 21, the U.S. District Court for the Western District of North Carolina granted a defendant’s motion for judgment on the pleadings in an FDCPA case concerning dispute responses over a debt. According to the order, the defendants—who represented a bank—sent a letter to the plaintiff attempting to collect an unpaid credit card debt. The letter included information about the creditor, the outstanding balance, and a validation notice. The plaintiff disputed the debt and requested validation of charges, payments, and credits on the account. The defendants responded with another letter, providing information about the original creditor and the balance of the unpaid debt. The plaintiff then sent another letter to the defendants requesting the original account agreement, all original account level documentation, and a “wet ink signature of the contractual obligation.” The defendants filed a collection suit against the plaintiff. The plaintiff filed suit in response, alleging the collection lawsuit violated the FDCPA and North Carolina state law because it “unjustly” condemned and vilified plaintiff for his non-payment of the alleged debt.

The court found that the “[p]laintiff’s allegations misconstrue the obligations of the debt collector in verifying the debt.” The court also noted that the FDCPA did not require the defendants provide “account level documentation,” stating that “[v]erification only requires a showing that the amount demanded ‘is what the creditor is claiming is owed,’ not conclusive proof of the debt.”