On January 2, the Consumer Finance Protection Bureau (“CFPB” or “Bureau”) filed an amicus brief in Carrasquillo v. CICA Collection Agency, Inc. in support of Plaintiff-Appellant Carrasquillo. The brief challenges the District Court’s interpretation of the Fair Debt Collection Practices Act (“FDCPA”) in relation to a debt collector’s intent when making potentially incorrect statements.
Section 1692e of the Fair Debt Collection Practices Act (“FDCPA”) provides that “[a] debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.” The statute creates a private right of action for consumers to sue debt collectors who break the law by lying or providing wrong information while collecting a debt.
The Carrasquillo case originated in September 2019, when the Plaintiff-Appellant initiated bankruptcy proceedings. Defendant CICA Collection Agency had been engaged to collect an alleged debt from the Plaintiff-Appellant. In October 2020 (during the pendency of the bankruptcy proceedings), CICA mailed a letter stating that such debt was “due and payable,” and that the Plaintiff-Appellant could be sued if the debt was not paid. The letter did not acknowledge the pending bankruptcy proceeding.
In October 2021, the Plaintiff-Appellant sued the Defendant in the District Court for the District of Puerto Rico, alleging that the letter violated the FDCPA, for, among...
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