Removing Barriers Blog

11th Circuit Issues Opinion in FDCPA Litigation
Posted April 22, 2021 by jbrunson

The 11th Circuit issued an opinion in Hunstein v. Preferred Collection and Management Services Inc. holding that an alleged violation of the third-party disclosure provision under 15 U.S.C. Section 1692c(b) results in an alleged concrete injury under Article III of the U.S. Constitution. The Court seems to come to this decision despite the absence of actual or tangible harm. In addition, the court concluded that the mere transmission of a consumer’s personal information to a letter vendor constituted an alleged violation of the third-party disclosure prohibition in 1692(c)b.

CUNA is concerned about the impact this decision may have on credit unions that use third-party vendors to produce collections-related communications. 

The defendant is likely to file a petition for a rehearing en banc. Stay tuned to the Removing Barriers blog for further developments on this matter.