Americollect continues to fight for the rights of healthcare providers to recover the money they are legally due. A Ridiculously Nice victory was recently scored in New Jersey, which will positively impact healthcare providers. The Hunstein-type lawsuit, Miller v. Americollect, Inc., was dismissed without prejudice from the Superior Court of New Jersey in early August via a strongly worded opinion. Showing a deep analysis of the information presented, as well as previous cases, the court rejected the consumer’s claims as insufficient. This decision carries even greater weight now that Hunstein v. Preferred Collection & Management Services was dismissed by the 11th Circuit Court of Appeals.
The Case
A New Jersey woman filed a putative class action alleging that Americollect violated the Fair Debt Collection Practices Act, 15 U.S.C. Section 1692, et seq. (FDCPA), and the New Jersey Consumer Fraud Act, N.J. S.A. 56:8-1, et seq. (CFA) by unlawfully disclosing private personal and financial information about the consumer when it used a third-party letter vendor to prepare a collection letter that was sent to her. According to the Hunstein-type lawsuit, this caused her to suffer stress, anxiety and embarrassment described as “reputational harm that “invaded the privacy” of the consumer by unreasonable publication of private facts. These are all similar components to what you could find in the Hunstein lawsuit.
Americollect moved to dismiss the complaint, and the court contended that the consumer did not suffer a cognizable injury due to the use of a third-party letter vendor.
The Decision
The strongly worded opinion on the Hunstein-type lawsuit rejected the plaintiff’s claims as insufficient. It delved into the conduct at issue; the transmitting of data to a letter vendor for the purpose of preparing a letter that would then be directed to the debtor herself. The opinion states this is not the “communicating” prohibited by the FDCPA. It was also not a communication undertaken “in connection with the collection of any debt” under any sensible interpretation of such terms as used in the statute. In fact, the letter vendor was compared to the telephone/telegram operator engaged as a “medium” for an otherwise permitted communication.
The court states that the vendor is not like employers, neighbors, family members or friends of the debtor. The employees of a letter vendor do not possess the ability to inflict reputational or other harm on a debtor simply by placing the information into a template letter intended to be sent to the debtor. The plaintiff did not allege the misuse of the data by the letter vendor, or its personnel, in a harmful manner. In cases like these, it is usually required to show evidence that the document was actually read, not merely processed. The court recognized that this is becoming more improbable because, “given advances in technology, letter vendors are even less likely than any such functionaries [as an employer, neighbor, family member, etc.] to actually see the debtor’s data.”
In the end, the court concluded that the consumer’s complaint did not state a viable claim for relief under the FDCPA and granted Americollect’s motion to dismiss without prejudice for the consumer to replead within 30 days. The consumer may also appeal within 45 days.
The Impact
The decision is important not only for Americollect, but also our clients and healthcare providers overall. This is one of the first substantive decisions in the New Jersey state courts that reject the . The mailing vendor theory is essentially that using a print vendor allows the wrong people to view sensitive information. Coupled with similar judicial opinions rejecting the Hunstein lawsuit decisions, Americollect is helping to lead the charge against frivolous lawsuits, fighting for the rights of healthcare providers like you to collect the money you are legally due so that you can continue your mission of saving lives. If you would like more information about the steps Americollect is taking in situations like this, please contact us today!
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