Collector - July 2018 - 51

IAP

was sent but before the balance was paid,' as
well as any interest or fees that accumulated
thereafter. This was no theoretical concern.
One of the plaintiffs in Avila had paid the
stated balance of her debt only to find
herself still on the hook for an unpaid
balance that was accumulating interest
at the alarming rate of 500% per annum.
The collection notices FRS sent to Taylor
and Klein, which stated their respective
balances due without discussing interest
or fees, could likewise have been read to
mean that prompt payment of the amounts
stated would satisfy the debts in question.
The difference is that, while that message
was prejudicially misleading on the facts
of Avila, on the facts of this case it was
accurate: prompt payment of the amounts

stated in Taylor's and Klein's notices would
have satisfied their debts."
The Second Circuit concluded by
expressly ruling that "if a collection notice
correctly states a consumer's balance
without mentioning interest or fees, and no
such interest or fees are accruing, then the
notice will neither be misleading within the
meaning of Section 1692e, nor fail to state
accurately the amount of the debt under
Section 1692g. If instead the notice contains
no mention of interest or fees, and they are
accruing, then the notice will run afoul of
the requirements of both Section 1692e and
Section 1692g."
In its "friend of the court" brief,
ACA argued that "[a] reversal [of the
district court's decision] would open the

floodgates to a spate of litigation over
such imaginary confusion by enterprising
consumers (or, more likely, their
enterprising attorneys). An affirmance [of
the district court's decision] will protect
debt collectors' due process rights, will
help prevent in terrorem lawsuits against
legitimate debt collectors who have not
violated the law in any way, and will give
effect to Congress's purpose 'to insure that
those debt collectors who refrain from
using abusive debt collection practices are not
competitively disadvantaged.'"
ACA is pleased it was able to help stop
the consumer's effort to create unfavorable
precedent for the accounts receivable
management industry by providing assistance
to its member agency as it fought yet another
uphill battle against aggressive consumers'
attorneys who will argue-as the consumer's
attorneys argued in Taylor-"that they or their
clients are confused by words that are totally
accurate and would not mislead even the least
sophisticated consumer."
As a result of the effort, the Second
Circuit's decision in Taylor is expected
to have enormous positive litigation and
financial impact for the many ACA members
currently involved in the hundreds of
copy-cat "reverse-Avila" cases pending
in federal courts throughout the Second
Circuit. And ACA is likewise delighted
that the Taylor decision raises the industryfavorable decisions (wins) ACA has helped
to achieve for its members through the
Industry Advancement Program to a total of
36 in just four years.
ACA's efforts to proactively support the
credit and collection industry are part of
the association's Industry Advancement
Program, and are made possible by funding
through ACA's Industry Advancement Fund. 
If you want to read more about the
most recent significant judicial decisions
involving the credit and collection industry,
ACA members can always find concise case
summaries at acainternational.org/industryadvancement-program.
Karen Scheibe Eliason is ACA International's
corporate counsel.

COLLECTOR 07.18

51


http://www.acainternational.org/industry-advancement-program http://www.acainternational.org/industry-advancement-program http://www.webrecon.com

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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