Taylor v. Financial Recovery Services, Inc., No. 17-1650 (2d Cir. 2018)Annotate this Case
A collection notice that fails to disclose that interest and fees are not currently accruing on a debt is not misleading within the meaning of Section 1692e of the Fair Debt Collection Practices Act. The Second Circuit affirmed the district court's grant of summary judgment for Financial Recovery Services (FRS) in an action alleging that debt collection notices plaintiff received were "misleading" in violation of Section 1692 because the notices did not indicate whether their debts were accruing interest and fees. The court held that if a collection notice correctly states a consumer's balance without mentioning interest or fees, and no such interest or fees are accruing, then the notice will neither be misleading within the meaning of Section 1692e, nor fail to state accurately the amount of the debt under Section 1692g. If instead the notice contains no mention of interest or fees, and they are accruing, then the notice will run afoul of the requirements of both Section 1692e and Section 1692g.