Covert, et al. v. LVNV Funding, LLC, et al.

Summarized by Elizabeth Gunn , United States Bankruptcy Court, District of Columbia
10 years 12 months ago

Citation:

___ F.3d ___, Case No. 14-1016 (4th Cir. Mar. 3, 2015)

Tag(s):

Ruling:

Dismissal of class action lawsuit filed by chapter 13 debtors against debt collectors for violation of the Federal Debt Collections Practices Act for filing proofs of claim without a Maryland debt collection license affirmed. Plaintiffs' claims should have been raised during the plan confirmation hearing, asked the district cour to reconsider provisions of the confirmed plans, and therefore claims are barred by res judicata.

Procedural context:

Appeal from district court for the District of Maryland dismissing complaint for violation of Fair Debt Collection Practices Act and Maryland law for filing a proof of claim in Plaintiff's chapter 13 cases without license as a Maryland debt collection agency.

Facts:

Debtor/Plaintiffs each individually filed chapter 13 in 2008. LVNV funding and its affiliated companies (the "Defendants") held unsecured claims against each Plaintiff and filed proofs of claim in each case. Plaintiffs' plans were confirmed, Defendants claims were allowed, and Plantiffs made payments on the claims. In 2013, Plaintiffs filed a class action lawsuit in the District Court of Maryland against Defendants for violation of the Fair Debt Collection Practices Act and various Maryland laws on the basis that Defendants were not licensed as debt collection agencies in Maryland. Defendants filed motions to dismiss under Federal Rule of Civil Procedure 12(b)(6).

Judge(s):

Niemeyer, Shedd, and Keenan

ABI Membership is required to access the full summary. Please Sign In using your ABI Member credentials. Not a Member yet? Join ABI now - it is absolutely worth it!