A federal judge in Michigan has granted summary judgment in favor of a collection agency that was sued for allegedly violating the Fair Debt Collection Practices Act by misrepresenting the amount owed and did not include any mention that the amount owed included interest in a collection letter sent to an individual.
A copy of the ruling in the case of Day v. NCB Management Services, Inc. can be accessed by clicking here.
The plaintiff had financed the purchase of a vehicle that was ultimately repossessed. The company that financed the purchase placed the deficiency balance with the defendant for collection. That amount was $4,951.18, but with interest, the total sought was $6,988.70. That was the amount listed in a collection letter sent to the plaintiff by the defendant. The plaintiff filed suit, alleging the defendant violated Section 1692e and 1692f of the FDCPA, which prohibit the use of false or misleading representations in attempting to collect on a debt and not using unfair or unconscionable means to collect on a debt.
The judge in the case was willing to overlook the fact that the plaintiff did not mention any allegation about a failure to specify interest charges in the original complaint — the plaintiff only raised the issue in response to the defendant’s motion for summary judgment — but said that regardless, the letter did not violate the FDCPA. The sole precedent raised by the plaintiff related to a case where a defendant failed to notify an individual that interest was continuing to accrue, which was not the situation in this case.
