The Eleventh Circuit Court of Appeals recently issued a new FDCPA opinion. The FDCPA (also known as The Federal Fair Debt Collection Practices Act) defines the parameter of what a third-party debt collector can and cannot do when collecting a consumer debt.
Based on the 11th Circuit's opinion, it appears that there is one more thing that a debt collector cannot do. The gist of this claim is that the debt collector law firm improperly listed the debt as being owed to BAC Home Loan Servicing, LP as the creditor, when BAC was not the true creditor.
The Homeowner filed suit. Of course, the debt collector filed a motion to dismiss the lawsuit alleging that the homeowner failed to state a claim under the FDCPA. The District Court agreed with the debt collector, and the homeowner appealed. The 11th Circuit, after reviewing the FDCPA statute, found that the communication from the debt collector contained a false representation to the consumer. The 11th Circuit also stated that the identity of the creditor is a serious matter.
Ultimately, the Appeals Court found that the consumer had stated a cause of action and reversed and remanded the case back to the District Court for further proceedings. Good for the Homeowner. I love to hear stories like this. It just goes to show that one person can fight city hall as the old saying goes. Nowadays, where it seems like an individual's access to the Courts is diminishing, it is nice to hear that someone was able to stand up to the debt collector and fight for their rights.