Boucher v. Finance System of Green Bay, Inc.

Plaintiffs, Wisconsin residents, incurred and defaulted on debts for medical services. Plaintiffs’ creditors assigned these debts to FSGB, a collection agency. FSGB sent plaintiffs letters stating: As of the date of this letter, you owe $[a stated amount]. Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater. Hence, if you pay the amount shown above, an adjustment may be necessary after we receive your check. Plaintiffs filed a class action, alleging violations of the Fair Debt Collection Practices Act (FDCPA), 15 U.S.C. 1692–1692p, claiming that FSGB’s letter is false because, under Wisconsin law, FSGB cannot lawfully or contractually impose “late charges and other charges” and that the letter causes unsophisticated consumers to incorrectly believe that they will avoid such charges if they immediately send payment. FSGB argued that the statement tracks the Seventh Circuit's "safe harbor language" from its 2000 “Miller” decision and that it is entitled to charge interest. The district court dismissed, acknowledging that some of the safe harbor language did not “strictly” apply but finding FSGB’s letter conveyed “the crucial fact” that plaintiffs’ debts were variable. The Seventh Circuit reversed. Debt collectors cannot immunize themselves from FDCPA liability by blindly copying and pasting the Miller safe harbor language without regard for whether that language is accurate under the circumstances. View "Boucher v. Finance System of Green Bay, Inc." on Justia Law