A Debt Collector’s False Statement Must be Material to Violate the FDCPA

The Eighth Circuit recently found that consumers must prove a debt collector’s false statement was material to violate the Fair Debt Collection Practices Act (“FDCPA”). In applying this standard, the Eighth Circuit joined five other federal circuit courts, including the Ninth Circuit, which encompasses Nevada and California, among other states.
 
The case involved a lawsuit against the consumer for an unpaid medical debt that the collector purchased from the medical provider. In the underlying case, the consumer challenged the documents supporting the lawsuit, and the court ruled in the consumer’s favor. The consumer then sued the medical collector for violating the FDCPA by making false statements and threatening to take action that cannot be legally taken. The Eighth Circuit found that a debt collector’s loss of a collection action, in and of itself, does not establish a violation of federal debt collection laws.
 
This case illustrates the importance of hiring an experienced Las Vegas debt collection attorney to review and analyze your case. It also demonstrates that claims against debt collectors must be vetted to ensure they comply with federal law and precedent to avoid dismissal as occurred in this matter.

Source: Hill v. Accounts Receivable Services, LLC, No. 16-4356 (8th Cir. 2018)