Can "could" cause collection catastrophe?
Yes, according to the US Court of Appeals for the 3rd Circuit. A creditor sent a collection letter demanding payment, failing which the matter "could" result in a legal action being filed against the debtor. The debtor filed a damages action against the creditor, for claimed violation of the federal Fair Debt Collection Practices Act (FDCPA), which prohibits numerous "abusive and deceptive" actions, including threatening consumers with legal action when no such step actually is intended to be taken. The trial court dismissed the action, on the basis that "could" does not mean "will", so there was no actual threat of action being taken, but merely a statement that legal action would be a possible remedy if the debt was not paid. The Court of Appeals reversed and sent the case back to be decided, because a jury might find that the letter did give the impression that legal action was imminent, despite use of the word "could". Brown v. Card Service Center, (3rd Cir. September 29, 2006)
Collection letters and practices should be monitored and updated regularly. New decisions such as this can cause liability that would not reasonably have been previously expected.
