Tuesday, January 18, 2011

3rd Circuit: Letters to Debtor's Lawyer May Be Actionable

Allen v. LaSalle Bank


Ruling on an issue that has splintered the circuits, the 3rd U.S. Circuit Court of Appeals has ruled that lawyer-to-lawyer communications may be actionable under the Fair Debt Collection Practices Act if the information conveyed is false.
 
In so ruling, the 3rd Circuit sided with the 4th Circuit and rejected the views of the 2nd and 9th circuits, both of which held that communications to lawyers are never actionable because a lawyer can be expected to protect a consumer from a debt collector's behavior.