A class action lawsuit against a Minnesota debt collection law firm for breaking federal collection law will continue, reported Magistrate Judge Jeffrey Keyes last week.
The lawsuit alleges that Messerli & Kramer sent garnishment papers to the banks and employers of an unknown number of people which requested a freeze on their income for three months longer than allowed by law. Magistrate Keyes has recommended rejecting Messerli's attempt to dismiss the claims that this broke the federal Fair Debt Collection Practices Act.
"In this case," the court reported, "it is plausible that a debtor seeing that funds would be retained for 270 days, rather than 180 days, might feel more heavily pressured to pay the debt. In other words, the materiality of the violation is a question of fact, and therefore unsuitable for resolution on a motion to dismiss for failure to state a claim."
Bennett Hartz is an associate attorney at Drewes Law, PLLC who defends against debt collection and foreclosure. He can be reached by email at firstname.lastname@example.org.
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