Widow Who Missed Last Mortgage Payment Allowed to Sue Law Firm for Unfair Collection
A federal appeals court has ruled that an elderly widow can sue a law firm for unfair debt collection practices, even though the alleged wrongdoing occurred in communications between the firm and her own lawyer.
The 85-year-old plaintiff, Dorothy Rhue Allen, had missed her last mortgage payment on her New Jersey home because she was in the hospital, her lawyer told the Associated Press. LaSalle Bank filed foreclosure papers through the law firm Fein, Such, Kahn and Shepard.
When Allen’s lawyer asked how much his client needed to pay to resolve the matter, he was told she would have to pay nearly $5,800. Allen contends in a class action suit that the amount was excessive and violated the Federal Debt Collection Practices Act.
Fein Such had argued the request was sent to Allen’s lawyer, and as a result the consumer protection law didn’t apply. The 3rd U.S. Circuit Court of Appeals based in Philadelphia disagreed in a Jan. 12 decision (PDF). The court said the debt collection law imposes strict liability, and a contrary ruling would undermine the deterrent effect of the law. Federal appeals courts have divided on the legal question.
Courthouse News Service also has the story.
