A District Court judge in Missouri has partially dismissed a Fair Debt Collection Practices Act lawsuit against a collection attorney, leaving only one claim to proceed while dismissing others.
The background: The case stems from a debt collection action related to unpaid homeowner association dues. The plaintiff owed $234 in fees to an HOA for a property in Missouri. The defendant representing the Association sent a letter demanding payment in October 2022. The letter, which was sent to an individual who was not the debtor, but had previously acted as a guardian for the property, led to the FDCPA lawsuit.
- The plaintiffs claimed that the attorney violated the FDCPA in three ways: by failing to include required disclosures in the initial communication, by improperly communicating with a third party, and by not providing timely notice of the right to dispute the debt.
- The lawsuit was filed on October 3, 2023, approximately one year after the initial communication.
The ruling: Judge Roseann A. Ketchmark of the District Court for the Western District of Missouri, dismissed two of the plaintiffs’ claims, agreeing with the defendant that they were filed outside the FDCPA’s one-year statute of limitations. The letter in question was sent to the plaintiffs on October 1, 2022 and the lawsuit was filed on October 3, 2023. The claims that were dismissed involved violations of disclosure requirements and improper third-party communication under sections 1692e(11) and 1692c(b) of the FDCPA. The plaintiffs conceded that these claims were time-barred and agreed to their dismissal.
- However, the judge allowed the third claim to proceed. This claim, filed under section 1692g of the FDCPA, alleges that the attorney failed to provide proper notice of the debtor’s right to dispute the debt within the required timeframe. The judge ruled that this claim was filed within the statute of limitations and that the plaintiffs because the disclosure had to be made within five days after the initial communication was made, which would have been by October 6, 2022.
