Mistake of Law No Defense to FDCPA
The U.S. Supreme Court yesterday issued its opinion in Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich LPA, holding that a mistake of law cannot be the basis of a bona fide error defense to the Fair Debt Collection Practices Act.
In Jerman, plaintiff filed suit against a collection law firm alleging violations of the FDCPA, among other things, based on assertions to plaintiff by the law firm that her debts would be assumed valid unless she disputed the debt in writing, which is not required by the FDCPA. The district court granted summary judgment for defendant, holding that defendant's mistake of law was a bona fide error under the FDCPA, shielding them from liability. Plaintiff appealed. The Sixth Circuit affirmed, holding that mistakes of law, in addition to clerical errors, can be the basis of a bona fide error defense under the FDCPA.
The Supreme Court reversed and remanded, resolving a split in the circuits on this issue, holding that "A violation resulting from a debt collector’s misinterpretation of the legal requirements of the FDCPA cannot be “not intentional” under §1692k(c)" and thus cannot be the basis of a bona fide error defense.
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