All Debt Collectors Must Give Consumers Notices

Consumer Notices

All Debt Collectors Must Give Consumers Notices Required by the FDCPA According to 9th Circuit Court of Appeals

On July 20, 2016, the U.S. Court of Appeals for the Ninth Circuit reversed a lower court’s ruling in an alleged class action over debt collection notices. The case titled Hernandez v. Williams, Ziman & Parham P.C., involved allegations that a debt collector violated the Fair Debt Collection Practices Act (FDCPA) when that collector did not send out its own notices to consumers about their right to request verification of their debts or dispute all or part of alleged debts.

Instead, the defendant debt collector in Hernandez argued that when another debt collector previously tried to collect from the plaintiff and sent a statutorily-required verification notice to her, that that earlier notice relieved the defendant from having to provide its own verification notice to plaintiff. Of course, conducting business in a manner where a subsequent debt collector believes it does not have to independently comply with the FDCPA is probably more profitable because subsequent debt collectors would not have to pay for the paper, printing, envelopes, and postage necessary to comply with federal law and give individual consumers the notice of their rights that is required of all debt collectors.

In its Hernandez opinion, the Ninth Circuit reaffirmed that the FDCPA requires that each collection agency or debt collector must send a letter to people alleged to owe a debt that informs them of their verification rights even if a previous collector had done so.

If you, a friend, or a loved one has received a collection letter, you may want to contact us about scheduling a free evaluation of whether you may have valid claims for compensation under the FDCPA or other consumer protection laws.

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