Published On: May 19th, 2015 | Author: Perry Law, P.C. | Category: Bankruptcy
Recently, the United States Supreme Court denied the Petition for Writ of Certiorari in LVNV Funding, LLC v. Crawford. The Court’s denial furthers the division among circuits as to whether Fair Debt Collection Practices Act (FDCPA) claims can arise from proofs of claim.
In Crawford, the Eleventh Circuit expanded the reach of the FDCPA to proofs of claim. Crawford v. LVNV Funding, LLC, 758 F.3d 1254 (11th Cir. 2014). The Court held that the filing of a proof of claim was an attempt to collect a debt and that the filing of a proof of claim for time barred debt violated the FDCPA.
Throughout the United States since Crawford, other comparable actions have been filed. These decisions have found the other way, meaning, that the FDCPA did not apply to proofs of claim. See, e.g., Donaldson v. LVNV Funding, LLC, C.A. No. 1:14-cv-01979-LJM-TAB (S.D. Ind. Apr. 7, 2015);Torres v. Asset Acceptance, LLC, C.A. No. 2:14-cv-6542-ER (E.D. Pa. Apr. 7, 2015); Torres v. Cavalry SPV I, LLC, C.A. No. 2:14-cv-5915-ER (E.D. Pa. Apr. 7, 2015). Therefore, the Supreme Court’s denial leaves an unresolved circuit split.
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