A District Court judge in New York has granted a defendant’s motion to dismiss a Fair Debt Collection Practices Act class-action lawsuit on the grounds the plaintiff did not suffer a concrete injury and thus does not have standing to sue, after she was sued in state court for an unpaid debt that she claimed was the incorrect balance.
The Background: The defendant filed a collection lawsuit in New York state court to collect on an debt of $16,568.35. The plaintiff claims not to owe that much, and that a payment history attached as an exhibit to the complaint showed a balance of $14,747.05.
- While the collection lawsuit was still pending, the plaintiff filed this suit, accusing the defendant of violating the FDCPA by making false or deceptive representations and using unfair or unconscionable means to attempt to collect on a debt.
The Ruling: The plaintiff claims to have standing because the underlying collection lawsuit exposes her to a potential judgment, but the possibility of a future adverse judgment is “too speculative” for the plaintiff to have standing, ruled Judge Rachel P. Kovner of the District Court for the Eastern District of New York. In fact, the plaintiff’s argument makes it implausible that a judgment will be obtained, because the account records indicate the amount owed is different than the amount being sought.
- The plaintiff also failed to claim that defending the collection lawsuit has forced her to incur any costs, which also could have established standing, Judge Kovner wrote.
