Class Action Claims Under the Fair Debt Collection Practices Act Dismissed
In response to foreclosure proceedings, borrowers counterclaimed alleging "thousands" of violations of the FDCPA for failure to disclose a "Mini-Miranda warning" in Orders to Docket. Removal to federal court was not possible. On behalf of our clients, we moved to dismiss all FDCPA class action claims, and borrowers responded with a motion for summary judgment.
The Circuit Court for Frederick County Maryland granted dismissal with prejudice of the FDCPA class action claims against our clients and denied summary judgment. The Court held that the Order to Docket was exempt under the FDCPA as a "formal pleading," therefore, no FDCPA disclosure was required. The Court explained that "The FDCPA is designed to protect consumers from abusive debt collection practices, not from the initiation of valid court proceedings. Once the dispute reaches the courts the debtor is safeguarded to the extent possible under the law."
Echehoyen v. GMAC Mortgage LLC et al., Case No. 10-C-09-003965 (Md. Cir. Ct. Mar. 15, 2010).