FDCPA Violation

Listen to this article

7^th Circuit Court of Appeals

Case Name: Alphonse D. Owens et al  v. LVNV Funding, LLC et al

Case No.: 15-2044; 15-2082; 15-2109

Officials: WOOD, Chief Judge, and BAUER and FLAUM, Circuit Judges

Focus: FDCPA Violation

District court did not err in concluding that appellants failed to state a claim for relief under FDCPA.

“We are not unsympathetic to plaintiffs’ concern that in certain cases, debtors and their representatives fail to object to claims for unenforceable debts, which then become part of the bankruptcy plan. This outcome harms not only the debtor, who is forced to pay a portion of the stale debt out of limited means, but also creditors with legally enforceable debts whose share of the pie is reduced because an additional creditor is claiming a piece. See Crawford, 758 F.3d at 1261. But the risk of this outcome in such cases is not sufficient to support a FDCPA claim in the cases currently before us, where plain‐ tiffs’ attorneys successfully objected to proofs of claim that were neither false nor misleading”

Affirmed

Full Text

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.