The Vermont Supreme Court has affirmed a ruling in favor of a creditor that was accused of violating the Fair Debt Collection Practices Act because it allegedly told the consumer in a letter that a collection lawsuit had been filed against him before it was actually filed with the court.
The background: The plaintiff filed a civil action in Vermont state court alleging the defendant defaulted on a credit card account with an outstanding balance of more than $6,700.
- In response, the defendant raised several defenses, including lack of jurisdiction, fraud and alleged violations of the FDCPA.
- One of the central allegations was that the plaintiff sent a settlement letter stating that a lawsuit had been filed when, at the time the letter was sent, the complaint had not yet been filed with the court. The defendant also argued that the case was improperly commenced because he was served before the complaint was formally filed, and that the affidavit supporting summary judgment was not credible.
The ruling: The Vermont Supreme Court rejected each of the defendant’s arguments and affirmed summary judgment in favor of the plaintiff.
- On the FDCPA issue, the court noted that the defendant claimed the creditor engaged in deceptive practices by mailing legal documents and correspondence before the lawsuit was filed, but failed to explain how that conduct violated the statute. Because the argument was not adequately developed, the court declined to address it. The court emphasized that unsupported assertions are not enough to survive summary judgment.
- The court also found that Vermont’s procedural rules allowed the plaintiff to commence the action by service and later file the complaint within the required timeframe.
- It further rejected arguments that the affidavit was invalid simply because it appeared to be based on a template or signed outside the state, noting that those facts alone did not show the affiant lacked personal knowledge.
