Franklin v. Parking Revenue Recovery Services, Inc.

Dist. Ct. erred in granting defendants’ motion for summary judgment in plaintiffs’ action alleging that defendants violated Fair Debt Collection Practices Act (FDCPA), when they sent collection letters demanding $46.50 in payment when plaintiffs failed to pay $1.50 parking fee, as well as $45 nonpayment penalty arising out of plaintiff’s use of defendant’s parking lot. While Dist. Ct. believed that instant unpaid parking fees and nonpayment penalties were not “debts” as contemplated under section 1692a(5) of FDCPA, Ct. of Appeals found that plaintiffs’ obligations arose out of contract law, and thus were debts covered by FDCPA. As such, Dist. Ct.’s analogy that instant fees were sufficiently akin to “fines” assessed for nonpayment at municipal parking meters was inapt since neither instant fees nor penalties arose from municipal ordinance.