FDCPA Violation

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7^th Circuit Court of Appeals

Case Name: Henry Horia v. Nationwide Credit & Collection, Inc.,

Case No.: 19-1559

Officials: BAUER, EASTERBROOK, and ST. EVE, Circuit Judges.

Focus: FDCPA Violation

Nationwide Credit sent Henry Horia a letter seeking to collect a debt owed to Gottlieb Memorial Hospital. By return mail, Horia disputed the validity of this claim. The Fair Debt Collection Practices Act requires a debt collector such as Nationwide Credit that notifies a credit agency, such as Experian, about the debt to reveal whether the claim is disputed. 15 U.S.C. §1692e(8). Horia asserts in this suit that Nationwide Credit notified Experian about the debt but not about the dispute, injuring his credit rating and causing him mental distress.

A defendant who persuades a court that a sequential suit was brought to harass not only avoids an award of attorneys’ fees but also becomes eligible to collect its own attorneys’ fees from the debtor. 15 U.S.C. §1692k(a)(3). The statute thus provides debt collectors with tools to discourage abusive litigation. Horia may have difficulty showing that he suffered a marginal injury from Nationwide Credit’s second failure to notify Experian that a debt has been disputed. But he is entitled to try.

Reversed and remanded

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Derek A Hawkins is trademark corporate counsel for Harley-Davidson. Hawkins oversees the prosecution and maintenance of the Harley-Davidson’s international trademark portfolio in emerging markets.