In a decision released today, the 2nd Circuit upheld the district court’s opinion in Taylor v. Financial Recovery Services (FRS). In Taylor, the district court found that not including an interest disclosure was not a violation of the FDCPA. The 2nd Circuit agreed with the district court, finding that the concerns addressed in Avila were not present in the Taylor case.
Read today's decision here.
The court referenced that in Avila, the consumer could be misled into thinking that he paid the account in full by paying the balance listed on the letter when this was not in fact so because interest would have accrued on the balance between the date of the letter and the date the payment is processed. The 2nd Circuit found that this was not a concern in the instant case because had the consumer paid the balance on FRS’s letter, then the account would have indeed been paid in full.