Monday, May 3, 2010

Supreme Court Ruling

Debt collectors can no longer use the "bona fide error" defense under the Fair Debt Collection Practices Act. In the case, Jerman v. Carlisle, McNellie, Rini, Kramer & Ulrich, the plaintiff sued the defendant for violating the FDCPA. Carlisle McNellie attempted to foreclose on Ms. Jerman's home, after she had already paid her mortgage. Carlisle McNellie required Jerman to submit proof in writing within 30 days that she had paid the mortgage, but the FDCPA does not require the proof to be in writing.

Carlisle McNellie stated that it should not be held liable due to a "bona fide error".  A lower court agreed.  however, when the case went on to the Supreme Court, Justice Sonya Sotomayor ruled that "ignorance of the law will not excuse any person, either civilly or criminally."

A consumer can take action against a debt collector if the consumer feels the debt collector violated the laws currently in effect.  If you feel your rights have been violated, please contact us at 866-553-3272.

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