Urbina v. National Business Factors Inc., No. 19-16055 (9th Cir. 2020)
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The Ninth Circuit filed: (1) an order granting a request for publication, withdrawing the mandate, withdrawing a memorandum disposition, and replacing the memorandum disposition with an opinion; and (2) an opinion reversing the district court's grant of summary judgment in favor of the defendant debt collector in an action under the Fair Debt Collection Practices Act (FDCPA) and remanding for further proceedings.
The panel agreed with the Eleventh Circuit and held that the FDCPA's bona fide error defense does not allow debt collectors to avoid liability by contractually obligating creditor-clients to provide accurate information, nor by requesting that creditor-clients provide notice of any errors in the accounts assigned for collection without waiting to receive a response before instituting collection efforts. Accordingly, the panel reversed the district court's grant of summary judgment for NBF concluding that NBF was entitled to the defense because it employed a procedure reasonably adapted to avoid errors of the type that occurred in plaintiff's case. Rather, the panel concluded that the two procedures NBF relied upon did little more than evidence an attempt to outsource the duties the FDCPA imposes upon debt collectors.
Court Description: Fair Debt Collection Practices Act. The panel filed: (1) an order granting a request for publication, withdrawing the mandate, withdrawing a memorandum disposition, and replacing the memorandum disposition with an opinion; and (2) an opinion reversing the district court’s grant of summary judgment in favor of the defendant debt collector in an action under the Fair Debt Collection Practices Act and remanding for further proceedings. Agreeing with the Eleventh Circuit, the panel held that the FDCPA’s bona fide error defense does not allow debt collectors to avoid liability by contractually obligating creditor-clients to provide accurate information, nor by requesting that creditor-clients provide notice of any errors in the accounts assigned for collection without waiting to receive a response before instituting collection efforts.
This opinion or order relates to an opinion or order originally issued on August 17, 2020.
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