In a ruling that was first reported by ACA International, a federal judge in Nebraska has ruled in favor of a collection agency in a class-action lawsuit after a plaintiff sued for alleged violations of the Fair Debt Collection Practices Act and the Nebraska Consumer Protection Act.
The plaintiff, Trisha Robinson, had filed suit against the defendant, Accelerated Receivables Solutions, after she was sued by the agency over an unpaid medical debt. The plaintiff subsequently filed her own class-action suit, alleging the agency violated the state law in Nebraska by “miscasting” the suit in order to be eligible to collect attorney’s fees and interest, and violating the FDCPA by “seeking and collecting” interest, fees, and costs.
The plaintiff also alleged that the defendant was not entitled to attorney’s fees because it employees its own in-house counsel, similar to a defendant who represents himself or herself.
A copy of the ruling, in the case of Trisha Robinson v. Accelerated Receivables Solutions, can be accessed by clicking here.
Even though the claim was categorized as services rendered rather than action on an account, the judge ruled that the defendant was entitled to prejudgment interest and fees.
“Thus, regardless of whether the County Court Complaint is an action on an account, the debts at issue were incurred for services rendered or materials furnished, and otherwise appear to fall within the scope,” of the state law, wrote Judge Laurie Smith Camp.
Wrote ACA in its report:
ACA is encouraged that this important decision will positively impact its members’ ability to seek and collect payment of interest and attorney’s fees to which they are entitled. And had the consumer’s claims in Robinson been left unchallenged, the consumer’s counsel would be emboldened to continue developing a cottage industry of pursuing identical class actions lawsuits against various collection agencies and their in-house counsel throughout Nebraska on the same theories.
