FDCPA Case Dismissed on Lack of Standing in Bankruptcy

Brad Council

On December 20, 2012, in the case of Dionte Tyler, v. DH Capital Management, Inc., Case No. 3:12-CV-00129-CRS the United States District Court, for the Western District of Kentucky, dismissed the Plaintiff’s complaint for damages under the Fair Debt Collection Practices Act (FDCPA) finding that the claims were barred by res judicata under Civil Rule 13 and that the Plaintiff did not have standing to sue due to his bankruptcy filing.

In his complaint, the Plaintiff  (“Tyler”) alleged that DH Capital Management (“DHC”) violated the FDCPA and also alleged usury under KRS 360.020.  Tyler owed a credit card debt to DHC.   DHC filed a complaint for collection of that debt on March 23, 2011.  On June 28, 2011, Tyler filed for bankruptcy and received discharge from his debts.  However, in his original bankruptcy filing he neglected to list DHC as a creditor.  On October 12, 2011, Tyler was served with process regarding the debt owed.  Shortly thereafter, DHC became aware of Tyler’s bankruptcy status and immediately filed a notice to dismiss which was granted. In the interim, Tyler filed an answer to the collection action, but did not dispute the debt in that answer.  The answer also did not mention the filing of the bankruptcy action nor did it assert a counterclaim.