11th Cir. Nixes Debtor Suit Over Collector’s Mail Vendor Use

By Jon Hill (September 9, 2022, 5:45 p.m. EDT) — The full Eleventh Circuit on Thursday dismissed a closely watched lawsuit that challenged the debt collection industry’s use of outside mail providers, ruling that The consumer originally litigated hadn’t pointed to a harm from the practice that could establish his ability to sue.

In an 8-4 en banc decision, the appeals court ordered the dismissal of Florida consumer Richard Hunstein’s lawsuit accusing Preferred Collection and Management Services Inc. of violating the Fair Debt Collection Practices Act, which prohibits undisclosed disclosure. authorized debtor information to third parties.

Hunstein alleged that Florida-based Preferred Collection made such unauthorized disclosure by sending…

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