A debt collection letter that informs the consumer of the total, present quantity of his or her debt satisfies 15 U.S.C. 1692g notwithstanding its failure to inform the consumer of the debt's constituent components or the precise rates by which it might later increase. Such a letter does not violate section 1692e for failure to inform the consumer that his or her balance might increase due to interest or fees when the letter contains the "safe harbor" language previously ratified in Avila v. Riexinger & Associates, LLC, 817 F.3d 72 (2d Cir. 2016). In this case, after plaintiff received a debt collection letter from CMS, he filed suit against the company under the Fair Debt Collection Practices Act. The Second Circuit affirmed the district court's dismissal of plaintiff's claims, holding that CMS's letter complied with sections 1692g and 1692e. View "Kolbasyuk v. Capital Management Services, LP" on Justia Law

Kamal visited various J. Crew store, making credit card purchases. Each time, Kamal “received an electronically printed receipt,” which he retained, that “display[ed] the first six digits of [his] 6 credit card number as well as the last four digits.” The first six digits identify the issuing bank and card type. The receipts also identified his card issuer, Discover, by name. Kamal does not allege anyone (other than the cashier) saw his receipts. His identity was not stolen nor was his credit card number misappropriated. The Third Circuit affirmed the dismissal of Kamal’s purported class action under the Fair and Accurate Credit Transactions Act of 2003 (FACTA), which prohibits anyone who accepts credit or debit cards as payment from printing more than the last five digits of a customer’s credit card number on the receipt, 15 U.S.C. 1681c(g), for lack of Article III standing. Absent a sufficient degree of risk, J. Crew’s alleged violation of FACTA is “a bare procedural violation.” View "Kamal v. J. Crew Group, Inc." on Justia Law

Plaintiff appealed the district court's dismissal of his action against the Department of Education for violations of the Fair Credit Reporting Act (FCRA). Plaintiff's action stemmed from defendants' treatment of an allegedly fraudulent student loan in plaintiff's name. The Fourth Circuit affirmed the district court's dismissal of the action based on lack of jurisdiction because Congress had not waived sovereign immunity for suits under the FCRA. The court held that the purported FCRA waiver in this case fell short of being unambiguous and unequivocal. View "Robinson v. US Department of Education" on Justia Law

Crown buys defaulted consumer debt, then refers the accounts to third-party servicers for collection or hires a law firm to file a collection lawsuit. Crown does not contact consumers directly. Crown purchased Barbato’s credit card debt and referred the account to Turning Point for collection. Crown’s obligation to pay Turning Point was contingent upon Turning Point’s success; Crown established settlement guidelines. Turning Point sent Barbato a collection letter, identifying itself as a “Collection Agency” and Crown as its client and left voicemail messages. Crown did not directly communicate with Barbato, nor did it review or approve the letter. When Barbato filed for bankruptcy, Crown closed Barbato’s account. Barbato sued under the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692(a), identifying Crown as a “debt collector.” The Supreme Court decided (Henson) that “[a]ll that matters is whether the target of the lawsuit regularly seeks to collect debts for its own account or does so for ‘another.” The district court concluded that Henson pertained only to the “regularly collects” definition of “debt collector” and did not affect its holding that Crown was a debt collector under the “principal purpose” definition. On interlocutory appeal, the Third Circuit affirmed. An entity that acquires debt for the “purpose of . . . collection” but outsources the actual collection activity qualifies as a “debt collector.” View "Barbato v. Greystone Alliance LLC" on Justia Law

The Supreme Court reversed the judgment of the district court dismissing Plaintiff’s two-count petition, holding that the district court erred in holding that a seller of auction services of certain machinery is entitled to summary judgment on a claim brought by a buyer of those services under the Door-to-Door Sales Act (DDSA), Iowa Code chapter 555A. Plaintiff brought this action claiming a violation of the DDSA and seeking a declaratory judgment challenging the underlying sales contract because of an invalid execution by a third party and because of fraud in the inducement. The district court granted summary judgment in favor of Defendant, concluding, among other things, that the DDSA does not apply to a contract for auction services, such as the contract in this case. The Supreme Court reversed, holding (1) Defendant was not entitled to summary judgment on the DDSA claim where Defendant presented no evidence that Plaintiff’s purpose in purchasing the auction services was not “primarily for personal, family, or household purposes”; and (2) because the declaratory judgment count had allegations beyond the DDSA the district court erred in dismissing this count of the petition. View "Morris v. Steffes Group, Inc." on Justia Law

The Supreme Judicial Court vacated the judgment of the the district court granting summary judgment in favor of MaineStream Finance on Jacob Berry’s complaint seeking the return of a 2016 Chevrolet Camaro, holding that summary judgment was improper on the facts of this case. In 2016, MaineStream filed an action against Dwight Moody, Berry’s uncle, to repossess two race cars - including the car called “Outlaw" - that Moody had pledged as collateral in a security agreement. The court found that Moody was the owner of Outlaw and entered a final judgment. In 2017, Berry brought this action against MaineStream, alleging that MaineStream wrongfully seized his 2016 Chevrolet Camaro. The district court granted MaineStream’s motion for summary judgment based on MaineStream’s assertion that, in the 2016 action, the court determined that Moody owned the car and that Berry was barred from seeking relief pursuant to the doctrine of res judicata. The Supreme Judicial Court vacated the judgment, holding that summary judgment was improper because the record did not establish that Outlaw was the same vehicle was the one that was at issue in the instant case. View "Berry v. Mainstream Finance" on Justia Law

Kenneth Taggart appealed a superior court order affirming a trial court’s verdict on mortgage foreclosure in favor of Great Ajax Operating Partnership (“Great Ajax”). The Pennsylvania Supreme Court concluded Great Ajax or its predecessors failed to provide pre-foreclosure notice before initiating a second mortgage foreclosure action as required by the Loan Interest and Protection Law, 41 P.S. sections 101-605 (“Act 6”). In reaching this conclusion, the Court held the purposes of Act 6 were served by requiring each action in mortgage foreclosure to be preceded by a separate pre-foreclosure notice. A lender may not recycle a stale pre-foreclosure notice that it issued in connection with a prior complaint in mortgage foreclosure. Because Great Ajax failed to provide a separate pre-foreclosure notice before initiating the second action, the superior court's judgment was reversed. View "JP Morgan Chase Bank v. Taggart" on Justia Law

A Zestimate is an estimated value for real estate, generated on the Zillow website by applying a proprietary algorithm to public data, such as location, tax assessment, number of rooms, and recent selling prices. Zillow does not inspect the building nor adjust for whether a property is attractive or well-maintained. Zillow states that its median error (comparing a Zestimate with a later transaction price) is less than 6%. The Zestimate is off by more than 20% in about 15% of all sales. Zillow informs users that Zestimates may be inaccurate. Plaintiffs learned that the Zestimates for their parcels were below the amounts they hoped to realize. Zillow declined requests to either to increase the Zestimates or remove the properties from the database. Plaintiffs sued, citing the Illinois Real Estate Appraiser Licensing and Uniform Deceptive Trade Practices Acts. The Seventh Circuit affirmed dismissal. The plaintiffs lack a private right of action under the appraisal statute, which makes unlicensed appraisal a crime; an administrative agency may impose fines for unlicensed appraisal and issue cease-and-desist le\ers that can be enforced by injunctions. Illinois courts create a non-statutory private right of action “only in cases where the statute would be ineffective, as a practical ma\er, unless such action were implied.” Given the multiple means of enforcing the licensing act, and the penalties for noncompliance, a private action is not necessary. The Trade Practices Act deals with statements of fact, while Zestimates are opinions. View "Patel v. Zillow, Inc." on Justia Law

Rhone’s physical therapy provider (Institute), billed her $134 for each session. Insurance covered all but a $60 co-pay per session. Rhone did not remit her part of the bills. Institute turned to the Bureau for debt collection. After three years of collection efforts did not work, the Bureau reported to Equifax that Rhone owes nine debts of $60 each. Rhone contends that the Bureau had to report the aggregate debt of $540 rather than nine $60 debts. The district court found the at the Bureau made a “false representation” about “the character, amount, or legal status of any debt,” 15 U.S.C.1692e(2)(A) and imposed a $1,000 penalty. The Seventh Circuit reversed. The credit report was factually correct. The word “character” does not require aggregation of debts arising from multiple transactions with a single entity. The number of transactions between a debtor and a single merchant does not affect the genesis, nature, or priority of the debt and so does not concern its character. View "Rhone v. Medical Business Bureau, LLC" on Justia Law

Plaintiff filed suit against Propel, alleging violations of the Truth in Lending Act (TILA), the Electronic Funds Transfer Act (EFTA), and the Virginia Consumer Protection Act (VCPA). Plaintiff's action stemmed from a tax payment agreement (TPA) he entered into with Propel under Virginia Code section 58.1-3018. Propel then moved to dismiss the TILA and EFTA claims. The Fourth Circuit affirmed the district court's denial of Propel's motion to dismiss, holding that plaintiff had standing to bring claims under EFTA because the harm that he alleged was a substantive statutory violation that subjected him to the very risks that EFTA, a consumer protection statute, was designed to protect against. The court also held that the TPA was subject to TILA and EFTA because the TPA was a consumer credit transaction. In this case, the TPA was a credit transaction because it provided for third-party financing of a tax obligation. Furthermore, the TPA was a consumer transaction because, as financing of a real property tax debt, it was a voluntary transaction that plaintiff entered into for personal or household purposes. View "Curtis v. Propel Property Tax Funding, LLC" on Justia Law