Published on:

No Fair Debt Collection Act Violation Where Collection Agency Checks First

Ross v. RJM Acquisitions Funding LLC, No. 06-2059
Court: 7th Circuit Federal Court of Appeals
Issued: March 13, 2007
Issues: Debt collector issued demand letter to former bankruptcy debtor relating to a debt that had been discharged in the case. Debtor took the issue to the District Court and lost — the court said there was no violation of the Fair Debt Collection Practices Act (FDCPA) where a debt collector did its homework before issuing a demand letter. The 7th Circuit Court of Appeals agreed that this was a bona fide error under 15 USC sec. 1692k(c) — a computer search done before issuing the demand did not reveal that this debt had been discharged, and the plaintiff had filed for bankruptcy protection under a different first name, making such research even more difficult for the creditor.

Decisions like this can be deceptive. Most of the time when a collection agency pursues a debt that was discharged in bankruptcy the reason is that it has not done its homework. Learn more about protecting your rights at M. Hedayat & Associates, P.C. or e-mail me at to tell your story. All contacts are confidential.