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Tag: N.D. Ind.

Debt Collector Demand for Interest Violates FDCPA

Link: Knepp v. Huffman, Case No. 3:17-CV-282-JD (N.D. Ind., Sept. 28, 2018).

Summary judgment entered by judge Jon E. DeGuilio for plaintiff where debt collector demanded 8% interest despite no statutory authority to do so:

Martin Financial has not pointed the Court to any authority standing for the proposition that Indiana Code § 24-4.6-1-103 allows a debt collector to collect interest on an unpaid debt; where, as here, the debt collector has not produced a contract that provides for the imposition of interest in the first place, or any other evidence that an 8% interest rate would apply [. . .]

Because Martin Financial failed to identify any applicable Indiana statute permitting it to charge interest on Ms. Knepp’s debt, it effectively admitted (through waiver) that the dunning letters falsely imply a possible outcome that cannot legally come to pass.