Obtain Key Decision on Actions Taken after Settlement and Cancellation of a Debt and FDCPA Violations

In an Illinois federal district court, Moss & Barnett secured the dismissal of an action filed against its collector client by a consumer alleging that the collector issued an inaccurate cancellation of debt form (Form 1099-C) in violation of section 1692e of the FDCPA.  Moss & Barnett persuasively argued that at the time the collector issued the form, it had already settled the debt and cancelled the unpaid portion.  As a result, the collector was not engaging in debt collection, and could not, therefore, have violated section 1692e of the FDCPA, which regulates action “in connection with the collection of any debt.”  The court agreed, and granted judgment on the pleadings in favor of Moss & Barnett’s client.