Sixth Circuit Allows FDCPA Claim Against Law Firm For Misleading Letter
The Sixth Circuit Court of Appeals issued a new FDCPA opinion this week affirming dismissal for failing to state a claim but remanding to allow a plaintiff to amend his complaint against a law firm for threatening or misleading statements the firm allegedly made in a collection letter. In Walker v. Shermeta, Adams, Von Allmen, PC, 2015 U.S. App. LEXIS 14200 (6th Cir. Aug. 10, 2015) (not recommended for full-text publication), the defendant was a law firm tasked with collecting on overdue student loan accounts. One of the letters the firm mailed to the plaintiff stated that interest and other charges "may" continue to accrue, a statement the plaintiff alleged was deceptive because the firm did not have the legal right to add interest or other charges. Relying on a reported Seventh Circuit case, Taylor v. Cavalry Inv., L.L.C., 365 F.3d 572 (7th Cir. 2004), the district court dismissed the claim, ruling that "[e]ven if Defendants cannot lawfully charge interest and other fees on behalf of [the...
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