FDCPA Violation

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7^th Circuit Court of Appeals

Case Name: Carmen Franklin et al v. Parking Revenue Recovery Services, Inc., et al

Case No.: 14-3774

Officials: FLAUM, RIPPLE, and SYKES, Circuit Judges

Focus: FDCPA Violation

Unpaid parking fees and nonpayment penalties are considered debts within the meaning of FDCPA, therefore the obligations that arise from a transaction is a debt and an attempt to collect it apply, obligating the Respondent to comply with FDCPA procedures.

“The judge’s analogy to theft was also inapt. The judge thought a car parker’s failure to pay resembled the condition of the thief that we described in Bass. There we noted that the FDCPA doesn’t cover a thief’s obligation to pay for the goods he steals if his obligation is created by tort law (e.g., the tort of conversion), see RESTATEMENT (SECOND) OF TORTS § 222A (Am. Law Inst. 1965), rather than by contract law, see Bass, 111 F.3d at 1326. The obligations at issue here, however, are not premised on the tort of conversion; they are premised exclusively on the contract that was formed between Franklin and Chism on one side and CPS on the other.”

Reversed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.