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Mass-produced letters not `fair debt collection''; court holds attorney liable.

Publication: Trial
Publication Date: 01-FEB-03
Format: Online - approximately 650 words
Delivery: Immediate Online Access

Article Excerpt
An attorney who sent form-based collection letters to delinquent credit-card holders without sufficiently reviewing their files is liable under the federal Fair Debt Collection Practices Act, the Seventh Circuit Court of Appeals has ruled.

In the class action--filed on behalf of GM Card holders in Illinois who received delinquency letters from the defendant--the appeals court ruled that a debt collection letter from a lawyer implies that he or she "assessed the validity of the debt" and is prepared to take legal action.

"It is this implicit message that `get[s] the debtor's knees knocking' and makes the...

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