Appeals court rules in favor of credit unions in FCDPA lawsuit

September 9, 2022

The 11th Circuit Court of Appeals vacated the plaintiff’s standing Thursday in Hunstein v. Preferred Collection and Management Services Inc., a Fair Debt Collection Practices Act (FDCPA) lawsuit.

CUNA filed a brief stating that a ruling for the plaintiff would threaten the functioning of debt collectors, mortgage servicers, and the broader financial services industry.

CUNA filed its brief in January with the Chamber of Commerce and multiple bank trade associations stating:

  • The appellant has not established injury to provide the court with jurisdiction.
  • The appellant’s “expansive reading” of parts of the FDCPA should be rejected, as it contravenes Congressional intent behind the enactment of the FDCPA.

The panel of judges did not address larger questions of Congressional intent, the decision will not create precedent that puts the use of vendors in jeopardy for financial services providers.