Dist. Ct. did not err in granting defendants-debt collectors’ motion for summary judgment in action under Fair Debt Collection Practices Act, alleging that defendants’ dunning letters that added five percent interest to their medical debts violated 15 USC section 1692(a)(1) because Wisc. Law allowed creditors to collect said interest (in absence of contractual provision calling for payment of said interest) only if instant debts had been reduced to judgments. Safe-harbor provision contained in Wisc. Statute (section 426.104(4)(b)) allowed defendants to collect said interest, where Wisconsin Administrator had failed to timely object to defendants’ request to collect said interest. As such, defendants’ dunning letters did not constitute false representations about character, amount or legal status of plaintiffs’ debts.
Federal 7th Circuit Court
Civil Court
Fair Debt Collections Practices Act