Bad Check Collectors

[David A. Szwak]

Independent contractors which contract with the county or other local governmental agency to recover dishonored checks plus governmental fees have claimed that they are not subject to the FDCPA although they directly seek collection by sending notices on the government's letterhead without revealing their participation. Piper v. Portnoff Law Assocs., 396 F.3d 227 (3d Cir. 2005). In one case, the district court held that the independent contractor was a debt collector subject to the FDCPA. Gradisher v. Check Enforcement Unit, Inc., 133 F.Supp.2d 988 (U.S.D.C. W.D. Mich. 2001); 2001 U.S. Dist. LEXIS 14862 (U.S.D.C. W.D. Mich. 2001) (class certification). Also see: Liles v. American Corrective Counseling Servs., 131 F. Supp. 2d 1114 (U.S.D.C. S.D. Iowa 2001). Also, see: Passa v. City of Columbus, - F.3d -, 2005 WestLaw 372305, 2005 U.S. App. LEXIS 2832 (6th Cir. 2005) (Dismissal of FDCPA and OCSPA claims regarding the city’s Check Resolution and Mediation Program was reversed and remanded because the city’s website was not a public record of which judicial notice would be appropriate during a motion to dismiss for failure to state a claim.)