National Medical Collections Month

8th Cir. Applies ‘Materiality’ Requirement to FDCPA Action

gavelThe U.S. Court of Appeals for the Eighth Circuit recently joined with the Third, Fourth, Sixth, Seventh, and Ninth Circuits in applying a materiality standard to section 1692e of the federal Fair Debt Collection Practices Act (FDCPA).

In doing so, the Eighth Circuit affirmed the trial court’s order granting judgment in favor of a debt collector and against a borrower.

A copy of the opinion in Hill v. Accounts Receivable Services, LLC is available at:  Link to Opinion.

On Oct. 30, 2015, a debt collector filed suit in Minnesota state court against a borrower for unpaid medical bills and statutory interest under Minnesota Statutes § 334.01. As a defense, the borrower challenged the assignment of the debt to the debt collector.

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