Litigation Byte
Litigation Byte (February 2025 Edition)
Read Time: 2 minsDelivered in digestible, insightful bites, McGlinchey’s Litigation Byte is a monthly roundup of financial services decisions and cases nationwide that impact your business. Subscribe here.
District Court Holds Debt Verification In Response to Consumer’s Letter Refusing to Pay, But Disputing the Debt, Is Not a FDCPA Violation
A United States District Judge for the U.S. District Court for the District of Maryland rejected a plaintiff’s arguments that a debt collector’s verification of a debt in response to a letter refusing to pay, but disputing the debt, violated the cease communication directive under the Fair Debt Collection Practices Act.
Fifth Circuit Erie-Guess Excludes Retirement Accounts from Spousal Restitution Garnishment
On December 30, 2024, the Fifth Circuit reversed and remanded a ruling from the Southern District of Mississippi that concerned the denial of Appellant’s motion to dismiss a writ of garnishment, issued pursuant to the Fair Debt Collection Practices Act, for retirement accounts held solely in her name to pay restitution owed by Appellant’s spouse.
Fourth Circuit Rules that SCRA Does Not Preclude Arbitration
In a decision with potentially wide-ranging implications, the Fourth Circuit Court of Appeals reversed a district court’s decision to deny a national bank’s motion to compel arbitration, finding that amendments to the Servicemembers Civil Relief Act did not override the applicability of the Federal Arbitration Action to arbitrate claims under the SCRA.
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