NARCA Files Amicus Brief to Uphold FDCPA "bona fide error" Defense

WASHINGTON, DC — The National Association of Retail Collection Attorneys (NARCA) has filed an amicus brief in the U.S. Supreme Court in the matter of Jerman v. Carlisle, McNellie, Rini, Kramer, and Ulrich LPA, et al., No. 08-1200 (U.S. S. Ct.). This case concerns whether the Fair Debt Collection Practices Act’s (FDCPA) “bona fide error” defense applies to errors of law or solely clerical errors.

NARCA’s brief urges the Supreme Court to uphold the Sixth Circuit’s decision, which held that the FDCPA bona fide error defense, 15 U.S.C. § 1692k(c), applies to errors of law. NARCA advocates that by upholding that decision, collection attorneys can practice ethically, advance their clients’ legitimate interests and continue to practice within the bounds of existing law without constantly exposing themselves to substantial liability.

The FDCPA imposes many requirements on legal collections professionals. The Act imposes civil liability for violations of these requirements, including actual and statutory damages, plus costs and reasonable attorney’s fees. Congress specifically provided an affirmative defense for violations that are “not intentional and resulted from a bona fide error” in order to prevent liability from falling on those who act in good faith to comply with the FDCPA.

The amicus brief is available on the NARCA website at http://www.narca.org/?legal-materials.html. The National Association of Retail Collection Attorneys (NARCA) is a nationwide, not-for-profit trade association of debt-collection attorneys, all of whom must meet association standards designed to ensure experience and professionalism. Members are also guided by NARCA’s code of ethics, which imposes an obligation of self-discipline beyond the requirements of pertinent laws and regulations.

About NARCA
The National Association of Retail Collection Attorneys (NARCA) is a trade association of more than 700 law firms located in the United States and Canada that engage in the collection of consumer debt, primarily through use of the court system. Founded in 1993, NARCA is dedicated to serving those in the debt collection and credit industries through education, advocacy and outreach. www.narca.org.