Steffek v. Client Services, Inc., No. 19-1491 (7th Cir. 2020)Annotate this Case
The plaintiffs received form notices from Client Services with a header stated only “RE: CHASE BANK USA, N.A.,” with an account number. The letters continued: “The above account has been placed with our organization for collections.” The letters did not say whether Chase Bank still owned the accounts or had sold the debts. The Fair Debt Collection Practices Act, 15 U.S.C. 1692, requires the collector of consumer debt to send the consumer-debtor a written notice containing, among other information, “the name of the creditor to whom the debt is owed.” The plaintiffs argued that Client Services’ letters failed to identify clearly the current holder of the debt. The district court certified a plaintiff class of Wisconsin debtors who received substantially identical notices from Client Services, found that Chase Bank was actually the current creditor, and granted Client Services summary judgment. The Seventh Circuit reversed and remanded. The actual identity of the current creditor does not control the result. The question under the statute is whether the letters identified the then-current creditor clearly enough that an unsophisticated consumer could identify it without guesswork. The notices here failed that test.