7th Circuit says debt collector not liable under Fair Debt Act

A debt collection agency didn't violate the Federal Debt Collection Practices Act by using a dunning letter which listed the plaintiffs' past-due credit card payments as "current amounts due," without also showing the total credit card balance, the 7th Circuit has ruled.

The defendant

was a debt collection agency hired by a credit card company to collect past-due card payments. It sent standard form dunning letters to the plaintiffs regarding delinquent payments. The letters explained their purpose, listed the past-due amount as the "Current Amount Due," and promised that if this was paid in full to the creditor all collection activity would cease.

The plaintiffs claimed the letters violated the Fair Debt Act. They argued "the amount of the debt" referenced in the Act was not merely the amount past due, but rather the overall credit card balance with the creditor.

But the court disagreed: "Plaintiffs' argument seems to forget who the defendant is. [The defendant], not [the credit card company], is the collector here, so the 'amount of the debt' must be that owed to the former, meaning the amount past due. Whatever may be owed to [the credit card company], or for that matter to any other of plaintiffs' creditors, is of no consequence to this case."

Barnes v. Advanced Call Center Technologies, LLC (Lawyers USA No. 9936235) U.S. Court of Appeals, 7th Circuit No. 06-4338. July 12, 2007.

Credit: Lawyers USA Staff