Class Can Recover Under FDCPA, Rosenthal Act for Misleading Letters

Letters sent by a debt collector attempting to collect obsolete debts wherein it suggested that it could and would report the debt to collection bureaus violated the Fair Debt Collection Practices Act and California’s Rosenthal Act, according to a 2-1 decision by the U.S. Court of Appeals for the Ninth Circuit (Gonzales v. Arrow Financial Services, LLC, 9th Cir., No. 10-55379).

Judge Betty Binns Fletcher also determined that the class plaintiffs may recover statutory damages under both statutes.

Challenged Conduct.

Johnny Gonzales brought suit against Arrow Financial Services LLC after receiving a letter attempting to collect a debt ...