BOTTOM LINE: Where an individual alleged that mortgage servicers violated the automatic stay when they sent him documents concerning his mortgage while his Chapter 13 proceeding was pending, but none of the communications represented an effort to collect a debt, his Fair Debt Collection Practices Act and automatic stay violation claims were dismissed.
CASE: Palazzo v. Bayview Loan Servicing, LLC, Case No. 24-2169 (filed March 20, 2026) (Judges King, Wynn, THACKER).
FACTS: While in Chapter 13 bankruptcy proceedings, Ruben Palazzo received various documents from his mortgage servicers concerning his mortgage obligation. He sued the servicers, alleging that these communications amounted to debt collection activities, which were prohibited during his bankruptcy proceedings. He also claimed that the calculations included in those documents were inaccurate and therefore violated federal and state consumer protection laws.
After analyzing each document in detail, the district court concluded that none represented an effort to collect a debt. On that basis, the district court granted summary judgment to the servicers on his federal claims and declined to exercise supplemental jurisdiction over his state law claims.
LAW: Appellant’s Fair Debt Collection Practices Act, or FDCPA, claim alleges that appellees sent him three forms of documents trying to collect payment from him while he was in Chapter 13 bankruptcy — monthly statements, payoff statements and...
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