United States Second Circuit

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Easterling v. Collecto, Inc., 11-3209

In a bankrupt student loan debtor's action against a debt collector, on behalf of herself and 181 other individuals who had received collection letters concerning student loan debts, district court's dismissal of the complaint is reversed and remanded, as the collection letter's statement that plaintiff's student loan debt was "ineligible for bankruptcy discharge" was false on its face. Further, not only is the letter's representation literally false, it is also fundamentally misleading in that it suggests that the debtor has no possible means of discharging her student loans in bankruptcy, and the letter's capacity to discourage debtors from fully availing themselves of their legal rights renders its misrepresentation exactly the kind of "abusive debt collection practice" that the FDCPA was designed to target.

Appellate Information

  • Decided 08/30/2012
  • Published 08/30/2012

Judges

Court

  • United States Second Circuit

Counsel