A District Court judge in Ohio has granted a defendant’s motion to dismiss after it was sued for allegedly violating multiple statutes, including the Fair Debt Collection Practices Act, as well as a consent decree with the Consumer Financial Protection Bureau.
A copy of the ruling in the case of Crenshaw v. Portfolio Recovery Associates can be accessed by clicking here.
The defendant filed a collection lawsuit against the plaintiff to recover an unpaid debt, after which the plaintiff turned around and filed her suit against the defendant. The plaintiff accused the defendant of violating a consent decree with the CFPB that required the defendant to cease certain business practices, such as attempting to collect full amounts on debts in courts when paying pennies on the dollar for the account information. Unfortunately for the plaintiff, pointed out Judge Patricia A. Gaughan of the District Court for the Northern District of Ohio, there is no private right of action under the Consumer Financial Protection Act that would allow the plaintiff to sue for violating a consent decree.
With respect to a potential violation of the FDCPA, the plaintiff did not make a specific claim. In responding to the defendant’s motion to dismiss, the plaintiff “references specific conduct” that “clearly” violated the FDCPA, but did not provide more specifics, failing to even claim that the debt in question was for personal, family, or household purposes, Judge Gaughan noted. The plaintiff did accuse the defendant of calling her up to seven times per day, but did not allege which section of the FDCPA this conduct would have violated.
The plaintiff also accused the defendant of defamation and of violating state law in Ohio, but Judge Gaughan dismissed those claims as well.
