Thursday, May 10, 2007
Fair Debt Collection Practices Act applies to statements made in litigation
In SAYYED v. WOLPOFF & ABRAMSON, the Fourth Circuit dealt with the issue whether law firms are immune to claims under the Fair Debt Collection Practices Act because an alleged absolute common law immunity attaches to any statements made during the course of judicial proceedings. The district court accepted this theory of immunity and held that allegedly false statements in a debt collection law firm's interrogatories and summary judgment motion could not constitute FDCPA violations. The Fourth Circuit disagreed, holding that the Act applies to law firms that constitute debt collectors, even where their debt-collecting activity is litigation.
Posted by william at 7:37 AM