Motion to Dismiss Granted for Collections Law Firm in Fair Debt Collection Practices Act Case
Shannon Sprinkle, John Bunyan and Joe Kingma won the dismissal of a federal action against a law firm that handles collections matters throughout the Southeast. The Plaintiff alleged claims based on the law firm’s initiating foreclosure proceedings against her. In dismissing the case, the Northern District of Georgia determined that the law firm was not engaged in “debt collection” under the Fair Debt Collections Practices Act because it was enforcing its client’s valid security interest in the Plaintiff’s property. The district court further concluded that the assignment of the Plaintiff’s loan and security deed was validly made retroactive under Georgia law. In addition to the FDCPA claims, the district court also dismissed the Plaintiff’s state law fraud and civil RICO claims.