A state appeals court in Illinois earlier this month ruled that a debt collection law firm that filed a collection suit on behalf of a debt buyer not licensed in the state did not violate the Fair Debt Collection Practices Act (FDCPA) as alleged in a consumer action.
The Illinois Court of Appeals – Second Division upheld the dismissal of a complaint against a collection law firm for an alleged violation of the FDCPA, finding that the suit filed by the law firm on behalf of its unlicensed debt buyer client did not violate the Illinois Collection Agency Act. As such, it could not serve as a viable basis for the FDCPA violation claim.
In Gibbs v. Blitt and Gaines, the consumer plaintiff sought class action status for other similarly situated plaintiffs against the law firm for actions it took on behalf of this specific client and any other collection agency not licensed in Illinois.
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