Seventh Circuit Case Allows Consumer to Bring Second FDCPA Lawsuit
The U.S. Court of Appeals for the Seventh Circuit recently ruled in favor of a consumer in a case concerning the Fair Debt Collection Practices Act (FDCPA), Horia v. Nationwide Credit & Collection, Inc. (2019). The Seventh Circuit’s decisions govern cases in Oak Park and throughout Illinois, so it is important for consumers to know how the Court ruled in this recent case. In short, the Court determined that a consumer was permitted to bring a second FDCPA claim against a debt collector for failing to notify a credit agency that the claim was disputed. Why is this case significant for debtors’ rights?
The consumer previously filed a claim against the debt collector for the same issue (but for a different debt), and the claim was settled and dismissed with prejudice. While the debt collector argued that the consumer was trying to obtain “multiple recoveries for a single kind of wrong,” the Court agreed with the consumer. We will tell you more about this case and its implications for consumers and debtors in Oak Park, Illinois.
Getting the Facts of Horia v. Nationwide Credit & Collection, Inc.
The case began when the consumer, Horia, disputed the validity of a debt claim he received from Nationwide Credit. Under the FDCPA, debt collectors are required to let credit agencies know whether the debt they are reporting is disputed by the consumer. According to Horia, Nationwide Credit reported the debt to Experian but did not tell Experian that the debt was disputed as the FDCPA requires. Thus, Horia argued, his credit rating was injured and he suffered mental distress.
The claim was significant because Horia previously filed a very similar claim against Nationwide Credit but for a different debt. According to the lawsuit, “the suit was settled and dismissed with prejudice by agreement of the parties.” Just 16 days after that claim was settled, Horia filed the present lawsuit.
Arguments and the Court’s Decision in Favor of the Consumer
Nationwide Credit argued that Horia was attempting to “game the system by seeking multiple recoveries for a single kind of wrong,” and that the claim should be dismissed because of claim preclusion. This ground would “foreclose repeated suits on the same claim, even if a plaintiff advances a new legal theory or a different kind of injury.” However, Horia argued that the theory only applies to the “same claim,” and that his second lawsuit was for a different claim.
The Seventh Circuit reasoned that Horia’s two lawsuits involved two different debts with two different creditors. Accordingly, Horia was permitted to file the second claim. The case makes clear that consumers in Oak Park and elsewhere can file multiple claims against a single debt collector when that collector violates the FDCPA, as long as the violations are distinct with different debts and different creditors.
Contact a Consumer Protection Lawyer in Oak Park
Debtors in the Oak Park area should know that they have protections under the FDCPA. If you need help filing a claim, or if you have other questions or concerns about your rights as a consumer or debtor under the law, an experienced Oak Park consumer protection attorney at our firm can help. Contact the Emerson Law Firm today for more information and to speak with an advocate.
See Related Blog Posts:
Reconsidering Medical Bankruptcy and Bernie Sanders’ Plan
10 Things You Should Know About Consumer Bankruptcy
The consumer previously filed a claim against the debt collector for the same issue (but for a different debt), and the claim was settled and dismissed with prejudice. While the debt collector argued that the consumer was trying to obtain “multiple recoveries for a single kind of wrong,” the Court agreed with the consumer. We will tell you more about this case and its implications for consumers and debtors in Oak Park, Illinois.
Getting the Facts of Horia v. Nationwide Credit & Collection, Inc.
The case began when the consumer, Horia, disputed the validity of a debt claim he received from Nationwide Credit. Under the FDCPA, debt collectors are required to let credit agencies know whether the debt they are reporting is disputed by the consumer. According to Horia, Nationwide Credit reported the debt to Experian but did not tell Experian that the debt was disputed as the FDCPA requires. Thus, Horia argued, his credit rating was injured and he suffered mental distress.
The claim was significant because Horia previously filed a very similar claim against Nationwide Credit but for a different debt. According to the lawsuit, “the suit was settled and dismissed with prejudice by agreement of the parties.” Just 16 days after that claim was settled, Horia filed the present lawsuit.
Arguments and the Court’s Decision in Favor of the Consumer
Nationwide Credit argued that Horia was attempting to “game the system by seeking multiple recoveries for a single kind of wrong,” and that the claim should be dismissed because of claim preclusion. This ground would “foreclose repeated suits on the same claim, even if a plaintiff advances a new legal theory or a different kind of injury.” However, Horia argued that the theory only applies to the “same claim,” and that his second lawsuit was for a different claim.
The Seventh Circuit reasoned that Horia’s two lawsuits involved two different debts with two different creditors. Accordingly, Horia was permitted to file the second claim. The case makes clear that consumers in Oak Park and elsewhere can file multiple claims against a single debt collector when that collector violates the FDCPA, as long as the violations are distinct with different debts and different creditors.
Contact a Consumer Protection Lawyer in Oak Park
Debtors in the Oak Park area should know that they have protections under the FDCPA. If you need help filing a claim, or if you have other questions or concerns about your rights as a consumer or debtor under the law, an experienced Oak Park consumer protection attorney at our firm can help. Contact the Emerson Law Firm today for more information and to speak with an advocate.
See Related Blog Posts:
Reconsidering Medical Bankruptcy and Bernie Sanders’ Plan
10 Things You Should Know About Consumer Bankruptcy
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