Tag: Bona Fide Error

4th Circuit: McLean v. Ray- Bona Fide Error Defense under FDCPA for Debt Collection Attorney allows reliance on Creditor’s Statement of Amount Owed


Ms. McLean was first admitted to ManorCare, a nursing home, in July 2006, signing a contract (through her son, James McLean, who held her Power of Attorney) agreeing to all costs, including attorneys’ fees, for collection of unpaid amounts. The contract provided that it would remain in effect if she was discharged but re-admitted within 15 days. In 2007, following her discharged from the nursing home, Mr. Ray sued Ms. McLean on behalf of ManorCare, with the matter being resolved by the parties.

Ms. McLean was re-admitted approximately to the nursing home about 20 months later, without signing a new contract and payment disputes arose a second time, with Mr.… Read More

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4th Circuit: Warren v. Sessoms & Rogers- FDCPA Offers in Judgment & Bona Fide Error Defense


Mrs.  Warren’s husband died, owing a debt on a credit card to BB&T.  Despite the credit card only being in the deceased husband’s name, BB&T, through its attorneys, Sessoms & Rogers, attempted on numerous occasions to collect the debt from Mrs.  Warren.

 She eventually brought a Complaint against Sessoms & Rogers, seeking actual damages, statutory damages and attorneys’ fees.  S&R made an Offer of Judgment under Rule 68, offering $250.00 in actual damages or an amount to be determined by the Court, $1,001.00 in statutory damages and reasonable attorney’s fees.  Mrs.  Warren rejected this offer.

S&R brought a motion to dismiss under Rule 12(b)(1, arguing that the district court lacked subject matter jurisdiction because the matter had been mooted by the Offer in Judgment, and also under Rule 12(b)(6) because the alleged violations were “minor technical violations” resulting from its bona fide error. … Read More

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