Circuit Court Revives FDCPA Suit Over Collection Law Firm’s Actions

The Third Circuit Court of Appeals earlier this month reversed a lower court’s ruling in a case brought against Bank of America in which the plaintiff alleged FDCPA violations on the part of a law firm collecting on BofA’s behalf. The defendants argued that the FDCPA does not apply to attorneys engaged in the practice of law, which the Circuit panel rejected.

In Kaymark v. Bank of America, the consumer plaintiff defaulted on his mortgage. On behalf of BofA, Udren Law Offices, P.C. initiated foreclosure proceedings against Kaymark in state court. The body of the Foreclosure Complaint listed certain not-yet-incurred fees as due and owing, which the plaintiff alleges violated several state and federal fair debt collection laws and breached the mortgage contract.

Specifically, the body of the Foreclosure Complaint included an itemized list of the total debt, stating which items were due and owing as of July 12, 2012. Among that list was $1,650 in attorneys’ fees, $325 in title report fees, and $75 in property inspection fees (or $2,050 total) were not actually incurred as of July 12, two months before the foreclosure action was filed on September 13.

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