Leeb v. Nationwide Credit Corp.

Dist. Ct. did not err in granting plaintiff-debtor’s motion for summary judgment in action alleging that defendant-debt collector violated section 1692g(b) of Fair Debt Collection Practices Act (FDCPA) by attempting to collect debt from plaintiff. Section 1692g(b) required defendant to cease collection efforts until it had verified that instant debt was plaintiff’s, and record showed that plaintiff had disputed that he owed instant medical debt during telephone call from plaintiff seeking to collect on debt, and that defendant had not verified said debt at time it subsequently sent letter to plaintiff declaring that plaintiff owed on debt and instructing plaintiff to return portion of letter with appropriate payment. Fact that plaintiff did not believe he owed debt even after receiving instant letter did not require different result. Also, defendant failed to establish that it qualified for “bona fide error” exception under section 1692k(c), where: (1) although defendant’s employee stated that while she intentionally sent letter, she did not intend to violate FDCPA, said declaration did not establish existence of either clerical or factual mistake; and (2) although defendant stated that sending of instant letter was against its policy, defendant failed to present evidence about what its policy instructed employee to do once debtor contested debt.