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In a decision that could throw the debt-collection industry into turmoil, on April 21, 2021, the Eleventh Circuit Court of Appeals released its opinion in the case
Hunstein v. Preferred Collection & Mgmt. Servs., Inc., No. 19-14434, 2021 WL 1556069 (11th Cir. Apr. 21, 2021). The crux of the opinion is the court’s holding that a debt collector faces potential liability under the FDCPA for transmitting a consumer’s personal information to
any third-party not explicitly designated by the statute. The potential implications of this decision are far-reaching.
The underlying facts in
Hunstein will be familiar to anyone acquainted with the everyday workings of many debt collectors. A debt collector electronically transmitted information about the consumer (including the consumer’s name, his status as a debtor, the entity to which he owed the debt, and the outstanding balance owed) to its third-party dunning ven
Friday, January 29, 2021
In
Mitchell v. Bailey, 2020 WL 7329219 (5th Cir. 2020), the Hoopa Valley Tribe (Hoopa Valley) had created the AmeriCorps Hoopa Tribal Civilian Community Corps (Tribal CCC) with a federal grant. Following severe floods and the resulting federal disaster declaration covering certain Texas counties, several AmeriCorps Disaster Response Teams, including Hoopa Tribal CCC, were deployed to Wimberley, Texas. Mitchell, a non-Indian resident of Texas, was injured while participating in the Wimberley disaster relief efforts, allegedly as a result of negligence caused by Bailey, a member of the Hoopa Tribal CCC. Mitchell sued Bailey and the Hoopa Valley Tribe for violations of state tort and contract law. The District Court, ruling on a 12(b)(1) motion to dismiss, held that sovereign immunity barred suit against Bailey, in his official capacity, and the Hoopa Valley Tribe, and dismissed the claims asserted against these parties with prejudice. The Fifth Ci