Karnette v. Wolpoff & Abramson, L.L.P.

[David A. Szwak]

Karnette v. Wolpoff & Abramson, L.L.P.
--- F.Supp.2d ----, 2006 WL 2222673
E.D.Va.,2006.
August 02, 2006

Background: Consumers sued credit card issuer's collection agency, alleging, inter alia, that agency had violated Fair Debt Collection Practices Act (FDCPA) by using sham arbitration proceeding. The District Court, Payne, J., denied agency's motion to dismiss. Agency moved to compel arbitration based on arbitration clause in credit card agreement.

Holdings: The District Court held that:
(1) agency was not entitled to enforce arbitration clause's general provision on theory that agency was “agentâ€