Barbosa v. Midland Credit Management, Inc., No. 19-1896 (1st Cir. 2020)Annotate this Case
The First Circuit affirmed the order of the district court granting Defendants' motions to compel Plaintiff's claims to the arbitration process, holding that Defendants had the authority to enforce the arbitration provision.
Jackeline Barbosa carried an overdue, unpaid balance on her credit card account. The unpaid balance was sold to Midland Funding LLC. The rights to Barbosa's account were assigned to Midland Credit Management, Inc. (MCM) Schreiber/Cohen, LLC was the law firm retained by MCM on behalf of Midland Funding to assist in MCM's debt collection efforts. Barbosa sued MCM and Schreiber/Cohen, claiming violation of the Fair Debt Collection Practices Act, 15 U.S.C. 1692e and 1692f by the attempt to collect the credit card debt in Massachusetts state court after the statute of limitations for the collection action had expired. MCM and Shreiber/Cohen asked the district court to compel arbitration pursuant to the arbitration election provision in Barbosa's credit card agreement. The district court dismissed Barbosa's claims. The First Circuit affirmed, holding that the district court properly concluded that MCM and Schreiber/Cohen were authorized to compel Barbosa to arbitrate her claims against them.
The court issued a subsequent related opinion or order on December 8, 2020.