• Plaintiff didn’t have standing to sue in federal court. Debt collector’s disclosures to vendor weren’t ‘publicity’ A lower court properly dismissed a debtor’s proposed class action alleging Keystone Credit Services LLC violated the Fair Credit Reporting Act when it disclosed the debtor’s personal information to its dunning letter printing and mailing service, a divided US appeals court ruled. Plaintiff Paulette Barclift failed to show that she suffered a concrete injury sufficiently comparable to a harm traditionally recognized as a basis for lawsuits in American courts, a requirement for Article III standing, the US Court of Appeals for the Third Circuit said Friday.

Barclift argued that her injury from the publication of her information to the vendor was comparable to the traditional common law tort of public disclosure of private information, but her allegations lacked the essential element of disclosure to the public, Judge Arianna J. Freeman said for the court.

“When the communication of personal information only occurs between a debt collector and an intermediary tasked with contacting the consumer, the consumer has not suffered the kind of privacy harm traditionally associated with public disclosure,” she said.

Printing Vendor

Barclift filed the lawsuit in October 2021 after receiving a debt-collection letter from Keystone regarding her outstanding debt for medical services. The letter was printed by RevSpring, Keystone’s printing and mailing vendor.

Barclift alleged that Keystone provided RevSpring her name, address, debt balance, and other information without her consent in violation of the FCRA, which prohibits debt collectors from communicating with third parties regarding the collection of a debt without the consumer’s consent.

She argued on appeal that she had sufficiently alleged concrete injury from Keystone’s disclosure of her information to RevSpring to establish standing to sue, but Freeman disagreed. To read more click here.