E.D. Wisconsin: FDCPA Does Not Require Specific Labels for Creditor, Identifying Both Comenity and PayPal is Not Misleading

In a September 30, 2018 decision, the Eastern District of Wisconsin found that there is no specific labelling requirement in the Fair Debt Collection Practices Act (FDCPA) for identifying the creditor and found nothing wrong with listing both PayPal Credit and Comenity Capital Bank in a collection letter in Smith v. Simm Associates, Inc., No. 17-cv-769 (E.D. Wisc. Sept. 30, 2018).

Factual and Procedural Background

Simm Associates, Inc. (Simm) sent a debt collection letter to plaintiff notifying her of an outstanding debt. The letter identifies PayPal Credit as Simm’s client and Comenity Capital Bank (Comenity) as the “Original Creditor.” As stated in the decision, “Comenity Capital Bank is the actual creditor, [but] the bank holds itself out as PayPal Credit in its transactions with consumers and thus would be more familiar with the PayPal name.”