NV Dist Ct Says HOA Collection Agent Violation of FDCPA was Excusable as Bona Fide Error

Nevada US District Court decision (October 31, 2014).

A collection agency for a Nevada homeowners association mistakenly sent a homeowner a foreclosure notice that failed to include the mandatory warning language which states that the author of the notice was “a debt collector and the information obtained would be used for the purpose.” The required statement had been included in all prior and subsequent communications. The homeowner sued the collection agency based on claims of strict liability for failure to comply with the Fair Debt Collection Practices Act (“FDCPA”) due to the omission of the statement.

The collection agency defended on the basis of a narrow exception to the strict liability provisions of the statute which excuses bona fide errors that occur notwithstanding the maintenance of procedures that are reasonably adapted to avoid any such error.

In ruling in favor of the collection agency, the court found that the omission was an isolated mistake by the collection agency that fell squarely within the narrow exception that the Fair Debt Collection Practices Act which provides for bona fide errors.

See case decision:Libby_v._Alessi_&_Koenig,_LL