Abdollahzadeh v. Mandarich Law Group, LLP, No. 18-1904 (7th Cir. 2019)Annotate this Case
Abdollahzadeh opened an MBNA credit-card account in 1998. He defaulted on the debt, making his last payment in August 2010. In June 2011 he attempted another payment that never cleared. In April 2013 MBNA sold his account to CACH, which referred Abdollahzadeh’s debt to Mandarich, a debt-collection law firm. CACH identified the later, unsuccessful payment attempt as the last payment on the account. Relying on this date, Mandarich sent Abdollahzadeh a collection letter in December 2015. Mandarich sued when it received no response. The state court dismissed the suit because the last payment to clear occurred outside of Illinois’s five-year statute of limitations. Abdollahzadeh sued Mandarich for attempting to collect a time-barred debt (Fair Debt Collection Practices Act, 15 U.S.C. 1692). The court granted Mandarich summary judgment, concluding that the violations were unintentional and occurred despite reasonable procedures aimed at avoiding untimely collection attempts. The Seventh Circuit affirmed, rejecting Abdollahzadeh’s arguments that Mandarich’s continuation of the collection action after it learned the true last-payment date created a factual dispute on the issue of intent; that the firm’s reliance on CACH’s representations about the last-payment date was an abdication of its duty to engage in meaningful review; and that the firm’s procedures for weeding out time-barred debts were insufficient to support the affirmative defense. The bona fide error defense doesn’t require independent verification and procedural perfection. Mandarich had procedures in place that were reasonably adapted to avoid late collection efforts.