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Second Circuit Holds Payoff Letter Stating that “Total Amount Due” May Include Other Amounts that Are Not Yet Due Does Not Satisfy FDCPA Amount Due Requirement

Consumer Finance Watch

In Andrew Carlin, individually and on behalf of a class v. Davidson Fink LLP, Case No. 15-3105-cv (2d Cir. March 29, 2017), the Second Circuit vacated an order and judgment of the District Court in favor of a debt collector, holding (1) that a mortgage foreclosure complaint is not an “initial communications” for purposes of § 1692g liability; and (2) that a Payoff Statement including the language “estimated fees, costs, additional payments, or escrow disbursements not yet due” does not state the “amount of the debt” as required by the Fair Debt Collection Practices Act, 15 U.S.C. § 1692 et seq. (“FDCPA”).

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