A state Appeals Court in Wisconsin has affirmed the certification of a class in a Fair Debt Collection Practices Act case, agreeing with the lower court that the plaintiff’s claims were not mooted by an offer of individual relief made by the defendant.
The background: The defendant sent the plaintiff a collection letter back in 2021, attempting to collect a debt owed to a third party. The letter included various references to a “case number” and client account number, and contained language suggesting the plaintiff contact an attorney if she was not planning on paying the debt. The letter also noted that no attorney from the defendant had personally reviewed the account at the time it was sent.
- The plaintiff filed a complaint in state court, arguing that the letter was confusing and misleading, in violation of both the Wisconsin Consumer Act (WCA) and the FDCPA. The plaintiff claimed that the language in the letter caused her to fear potential legal action, leading her to seek assistance from her attorneys.
- The defendant attempted to have the case dismissed, arguing that the letter was not misleading or confusing and that the plaintiff lacked standing. The lower court denied this motion, allowing the case to proceed.
- In early 2022, the plaintiff moved to certify the case as a class action, seeking to represent other consumers who received similar letters. The defendant argued against this motion, claiming that it had already offered the plaintiff full individual relief, which included statutory damages and a stipulated injunction to prevent further use of the contested language. However, the plaintiff rejected this offer, leading to the dispute over class certification.
The ruling: The Appeals Court upheld the lower court’s decision to grant class certification. The court found that the defendant’s offer of individual relief did not adequately address the claims of the entire class. The Appeals Court emphasized that allowing a defendant to “pick off” a lead plaintiff by offering individual relief would undermine the purpose of class actions, which is to provide a remedy for all individuals affected by similar alleged violations.
