A District Court judge in Oklahoma has certified a class action against a defendant accused of violating the Fair Debt Collection Practices Act by sending a collection letter that failed to identify the name of the original creditor and that a dispute needed to be filed in writing in order to be considered valid.
A copy of the ruling in the case of Hargis v. Equinox Collection Services can be accessed by clicking here.
The defendant sent collection letters to more than 17,000 residents of Oklahoma. The letters included a reference to the “original creditor” at the top of the page, which, the plaintiff argued, could mean that the debt had been sold or assigned to a subsequent creditor. The plaintiff also argued that the letter did not state that a request for the name and address of the original creditor, if different from the current creditor, must be filed in writing. Finally, the plaintiff is accusing the defendant of violating the FDCPA by requiring individuals to notify the defendant of a disputed debt in writing.
The judge had earlier denied the defendant’s motion to dismiss the case.
In arguing against the certification of the class, the defendant tried to convince Judge John Dowdell of the District Court for the Northern District of Oklahoma that members of the class would be better suited to filing individual claims, largely because of the recovery that they might be receive in a class-action compared with the amount they might receive should they file their own lawsuit against the defendant.
Under the FDCPA, plaintiffs may receive as much as $1,000 for a violation, but based on the net worth of the defendant, the statutory cap for each member of the class would be only $0.24.
But, along with questioning the defendant’s assessment of its own net worth, Judge Dowdell ruled that the interests of the class members were not “at odds” with class certification.
“Those who wish to pursue maximum recovery may opt out and bring their own claims,” Judge Dowdell wrote. “Meanwhile, those who think that $1,000 is not worth the trouble are free to do nothing. Mr. Hargis will represent their interests in this litigation.”
