No “litigation immunity” for dishonest debt collectors

News of the Sayyed v. Wolpoff & Abramson decision is all over the consumer blogosphere today, but it is a pretty important decision, so I will add my $.02.

Wolpoff & Abramson sued Sayyed to collect on a debt. They served interrogatories without any debt collector disclaimer (”this communication is from a debt collector . . .”), and later used false statements in a motion for summary judgment. Sayyed turned around and sued W&A for violating the FDCPA. W&A said that it was immune under the common law for statements made during litigation.

The district court agreed, but the Fourth Circuit overturned the district court, and it is a good day for consumers!

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