Stunning Rebuke of Plaintiff’s Attorney
A consumer filed a lawsuit after receiving a collection letter and calling the defendant citing violations of the Fair Debt Collection Practices Act (FDCPA) and the Texas Debt Collection Act (TDCA). The plaintiff alleged the firm engaged in debt collection activities while using the term “credit bureau” in its name despite long having stopped being a consumer reporting agency. After winning summary judgment and a statutory award of $1,000 the plaintiff sought $130,410 in attorney’s fees. During the proceedings it became clear plaintiff’s counsel engaged in egregious behavior by colluding to develop a cause of action and claimed the defendants engaged in debt collection practices in Texas, not Louisiana, where the plaintiff resided. The Fifth Circuit refused to reward such practices with an award of attorney’s fees although mandatory under the FDCPA.