The case was commenced in the United States District Court for the Western District of Virginia alleging that the servicer violated the FDCPA by attempting to collect a debt that had been discharged in bankruptcy by misrepresenting the consequences of non-payment.  The Plaintiff also alleged that the servicer violated the FCRA by misreporting the status of the debt to credit reporting agencies.  The district court granted the servicer's motion for summary judgment as to both claims--finding that the servicer was not attempting to collect a debt within the meaning of the FDCPA and that the FDCPA claims were precluded by the Code. The district court further determined that the Plaintiff could not maintian a cause of action under the FCRA or FDCPA related to the misreporting of the debt.  Plaintiff timely appealed.

Plaintiff defaulted on his mortgage in 2009 and continued to live in the million dollar home.  He received a chapter 7 discharge in 2011.  Over a year after his discharge, the mortgage servicer sent communications to plaintiff about the mortgage for which had been discharged by not paid.  The in rem right to foreclose survived bankruptcy.  The communications included monthly statements, payment coupons and explanations detailing alternatives to foreclosure.  The communications contained certain disclaimers that stated the communication was not intended as an attempt to collect a debt if the debt has been discharged in bankruptcy.  The servicer had also improperly reported the discharged debt to credit reporting agencies.  Once the servicer received a dispute notification from one of the agencies, it sent a notice removing any reporting as to the discharged debt. Plaintiff sued two years later arguing that the communications violated the FDCPA and the improper reporting to the agencies violated the FCRA and FDCPA.