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Supreme Court: FDCPA Allows Award of Costs to Prevailing Creditor Defendants

on Monday, 1 April 2013 in Banking Update

Last month, the U.S. Supreme Court held that the Fair Debt Collection Practices Act (FDCPA) does not preclude a court from awarding costs to a lender that prevails against allegations that it violated the FDCPA.  A lower court decision held that a defendant who is found to not have violated the FDCPA could be awarded costs under Federal Rules of Civil Procedure, and the Supreme Court affirmed the decision, finding that the FDCPA did not preclude such an award.  

The case, which may prevent the filing of frivolous lawsuits against creditors, is Marx v. Gen. Revenue Corp., No. 11-1175, 2013 WL 673254 (Feb. 26, 2013). 

Jonathan J. Wegner

Read the Full Newsletter: Banking Update April 01, 2013

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