Collector - July 2018 - 31

The Seventh Circuit clarifies
how debt collectors are
expected to investigate
consumer disputes under
the FDCPA and FCRA.
By David N. Anthony, Jonathan P. Floyd
and Stephen D. Lozier

T

he U.S. Court of Appeals
for the Seventh Circuit
recently affirmed a lower
court decision finding a debt
collector's verification and
investigation of a consumer's
disputes through its review of
records obtained from the creditor was both
satisfactory under the Fair Debt Collection
Practices Act and reasonable under the Fair
Credit Reporting Act. The case, Deborah
Walton v. EOS CCA, No. 17-3040 (7th
Cir. Mar. 21, 2018), could have significant
implications for debt collectors-though
not every circuit agrees with it.

EXPLORING THE FACTUAL AND
PROCEDURAL BACKGROUND
Originally filed in the Southern District
of Indiana in 2015, this matter arose out
of a debt plaintiff Deborah Walton owed
to AT&T. After notifying Walton of her
delinquency, AT&T assigned or sold the
debt to EOS CCA for collection. However,
the records AT&T transferred to EOS
contained the wrong account number for
Walton's debt.
EOS subsequently mailed Walton a
collection letter in an attempt to collect
the debt. Walton recognized the inaccurate
account number and disputed the debt
with EOS over the phone and by letter.
EOS confirmed the account information
through a review of the records it received
from AT&T and sent Walton a letter that
verified the information included in its debt
collection letter was accurate.
Walton alleged EOS's review of the
account documents without specifically
verifying the underlying debt with AT&T
was a violation of the FDCPA.
Following Walton's dispute, EOS reported
Walton's debt to credit reporting agencies
with a notation that the debt was disputed.
Walton then disputed EOS's reporting of the
debt with these credit reporting agencies.
The reports generated by the credit reporting
agencies for EOS stated that Walton claimed

COLLECTOR 07.18

31



Table of Contents for the Digital Edition of Collector - July 2018

Upfront
Industry News
Best Practices
FYI
Collection Tips
Navigating Uncharted Territory
Making Sense Out of Collection Notice Requirements
Do You Need to Contact Creditors to Verify a Debt?
Calendar
Honor Roll
Getting on the Right Path
A Better Framework
ACA Members Contribute to Successful Collectors Challenge Month
The ACA Int’l v. FCC Decision: What Does It Mean For Your Business?
Connecting with Legislators at ACA’s Washington Insights Conference
Second Circuit Rules for Accounts Receivable Management Industry in Case Supported by ACA’s Industry Advancement Program
Compliance
ACA SearchPoint
Ad Index
Last Word
Collector - July 2018 - Cover1
Collector - July 2018 - Cover2
Collector - July 2018 - 1
Collector - July 2018 - 2
Collector - July 2018 - 3
Collector - July 2018 - Upfront
Collector - July 2018 - 5
Collector - July 2018 - Industry News
Collector - July 2018 - 7
Collector - July 2018 - 8
Collector - July 2018 - 9
Collector - July 2018 - Best Practices
Collector - July 2018 - 11
Collector - July 2018 - FYI
Collector - July 2018 - 13
Collector - July 2018 - Collection Tips
Collector - July 2018 - 15
Collector - July 2018 - Navigating Uncharted Territory
Collector - July 2018 - 17
Collector - July 2018 - 18
Collector - July 2018 - 19
Collector - July 2018 - 20
Collector - July 2018 - 21
Collector - July 2018 - 22
Collector - July 2018 - 23
Collector - July 2018 - Making Sense Out of Collection Notice Requirements
Collector - July 2018 - 25
Collector - July 2018 - 26
Collector - July 2018 - 27
Collector - July 2018 - 28
Collector - July 2018 - 29
Collector - July 2018 - Do You Need to Contact Creditors to Verify a Debt?
Collector - July 2018 - 31
Collector - July 2018 - 32
Collector - July 2018 - 33
Collector - July 2018 - 34
Collector - July 2018 - 35
Collector - July 2018 - Calendar
Collector - July 2018 - Honor Roll
Collector - July 2018 - Getting on the Right Path
Collector - July 2018 - 39
Collector - July 2018 - A Better Framework
Collector - July 2018 - 41
Collector - July 2018 - ACA Members Contribute to Successful Collectors Challenge Month
Collector - July 2018 - 43
Collector - July 2018 - 44
Collector - July 2018 - 45
Collector - July 2018 - The ACA Int’l v. FCC Decision: What Does It Mean For Your Business?
Collector - July 2018 - 47
Collector - July 2018 - Connecting with Legislators at ACA’s Washington Insights Conference
Collector - July 2018 - 49
Collector - July 2018 - Second Circuit Rules for Accounts Receivable Management Industry in Case Supported by ACA’s Industry Advancement Program
Collector - July 2018 - 51
Collector - July 2018 - Compliance
Collector - July 2018 - 53
Collector - July 2018 - ACA SearchPoint
Collector - July 2018 - Ad Index
Collector - July 2018 - Last Word
Collector - July 2018 - Cover3
Collector - July 2018 - Cover4
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