FDCPA Caselaw Review for October 2018
A law firm sent a collection letter to the consumer stating that it intended to file a collection lawsuit in state court. The letter did not include a disclosure that the firm would collect court costs or fees, which were ultimately requested when the suit was filed. The consumer sued saying that the letter was false and misleading due to this omission. The court found that the letter was not deceptive or misleading because court costs would only become due if the debt collector prevailed in the lawsuit. This means that the balance would remain static even while the suit was pending and no disclosure was needed per the Second Circuit’s Taylor v. Financial Recovery Servicesdecision.