Jones, Wolf & Kapasi, LLC Defeats Motion to Dismiss By Law Firm Seeking to Collect a NJ Student Loan Debt

             Jones, Wolf & Kapasi, LLC has defeated a motion to dismiss for lack of subject matter jurisdiction in the United States District Court for the District of New Jersey against a law firm, Russell P. Goldman, PC ("RPG").

            In this matter, Jones Wolf & Kapasi, LLC represents two New Jersey consumers in a class action case alleging violations of 15 U.S.C. 1692 et seq., the Fair Debt Collection Practices Act ("FDCPA") wherein RPG sent the consumers a misleading and deceptive debt collection letter attempting to collect a New Jersey student loan debt along with "collection costs".  RPG's motion to dismiss was premised on the recent United States Supreme Court case of Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016) wherein RPG argued that the consumers in this case lacked standing under Article III of the United States Constitution.

             In denying RPG's, motion the Court stated: "... Plaintiffs argue they have Article III standing because they suffered a concrete injury '[d]ue to Defendant’s failure to provide Plaintiffs with the true and accurate information concerning the amount of the debt it was attempting to collect' and 'were exposed to the risk of an economic injury due to the risk [of] paying collection costs that had not been incurred, not awarded by any court and were not due.' (Id. at 15-16.) This Court agrees." Furthermore, the Court also opined: "Here, Plaintiffs allege that Defendant made false, deceptive, and misleading statements and representations, and employed unfair and deceptive means, to collect or attempt to collect a debt in violation of the FDCPA by 'demanding an amount for collection cost[s] in its initial and subsequent collection letters to Plaintiffs and other[s] similarly situated when said collection costs were not yet, if at all, due' to Goldman or HESAA. (ECF No. 27 at ¶ 97.) Plaintiffs allegedly 'suffered an informational injury' and 'a risk of economic injury due to Goldman’s violation of [Section] 1692e of the FDCPA.' (Id. at ¶¶ 95-96.) The Court finds Plaintiffs’ alleged an injury-in-fact is sufficient to confer Article III standing."

            The case is  Brian P. Carney and William C. Gumpper, Jr. v Russell P. Goldman, PC, 3:15-260 (BRM)(DEA)  and the Court's Order can be read here.

            For more information about Jones, Wolf & Kapasi, LLC, or if you have recently been contacted by a debt collection law firm, you are invited to connect with us at: legaljones.com or @JonesWolfKapasi.