Leeb v. Nationwide Credit Corp.

No. 14-1329, Appeal from ND IL ED No.1:12-cv-913
The 7th Circuit confirmed the ruling of the District Court granting Summary Judgment in favor of the Appellee and against Appellant. The Court ruled that Nationwide's letter to Leeb, even after he objected to the debt and demanded proof under the terms of the FDCPA, was an attempt to collect the debt and was not excused by the FDCPA’s “bona fide error” provision.
Procedural context:
The District Court for the Northern District of Illinois granted Summary Judgment to the effect that the Appellant, Nationwide Credit Corporation ("Nationwide"), violated the Fair Debt Collection Practices Act ("FDCPA") because it failed to “cease collection” as to Appellee Gregory Leeb ("Leeb").
Leeb received emergency medical care and a claim was submitted to Cigna. When Cigna asked for additional information from the medical provider, none was given so the file was closed. Nationwide was then hired to collect the small remaining balance and called Leeb. Leeb objected that his insurer should have paid the bill. Such an objection triggers a hold on further collection activity per the FDCPA until the debt is verified. Two days later however, Nationwide sent a threatening letter anyway and kept demanding payment.
Easterbrook, Manion, and Williams

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