Consumer Financial Services Litigation

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In Bravo v. Midland Credit Management, Inc., the plaintiff urged the U.S. Court of Appeals for the Seventh Circuit to take a liberal view of the Fair Debt Collection Practices Act’s (FDCPA) prohibition against contacting a consumer once he is represented by counsel, or after he has refused to pay a debt. The court dismissed all of plaintiff’s claims, shutting the door on an aggressive attempt to broaden the FDCPA’s reach.
Continue Reading Seventh Circuit Rejects Attempt to Expand Liability Under FDCPA

On February 12, 2016, the United States Court of Appeals for the Sixth Circuit issued its opinion in Baisden v. Credit Adjustments, Inc., 15-3411 (CA 6) (for publication), affirming dismissal of a purported class action under the Telephone Consumer Protection Act (“TCPA”). In Baisden, plaintiffs were the recipients of medical services from Mount Caramel Hospital in Ohio. As part of the care provided, plaintiffs received anesthesiology services from Consultant Anesthesiologists, an anesthesiologist group working within the hospital. When plaintiffs failed to pay for the services rendered, Consultant Anesthesiologists sent their accounts to debt collector, Credit Adjustments. Credit Adjustments used an automatic telephone dialing system and prerecorded messages to contact plaintiffs on their cell phones to request payment.
Continue Reading Sixth Circuit Issues Important TCPA Ruling on “Prior Express Consent”

On January 20, 2016, the Supreme Court ruled that companies cannot defeat class action suits by making settlement offers to named plaintiffs. In a 6-3 decision, the Justices held in Campbell-Ewald Co. v. Gomez that an offer of compensation, equal to or greater than the maximum potential individual damages to a defendant, does not erase a defendant’s interest in a case. The ruling could significantly hinder companies’ ability to overcome pending class action suits.
Continue Reading Supreme Court Says Companies Cannot Use Settlement Offers to Overcome Class Actions