Annunziato v. Collecto, Inc.

293 F.R.D. 329, 2013 WL 4045810, 2013 U.S. Dist. LEXIS 113073
CourtDistrict Court, E.D. New York
DecidedAugust 9, 2013
DocketNo. 12-CV-3609 (ADS)(AKT)
StatusPublished
Cited by27 cases

This text of 293 F.R.D. 329 (Annunziato v. Collecto, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Annunziato v. Collecto, Inc., 293 F.R.D. 329, 2013 WL 4045810, 2013 U.S. Dist. LEXIS 113073 (E.D.N.Y. 2013).

Opinion

MEMORANDUM OF DECISION AND ORDER

SPATT, District Judge.

On July 19, 2012, the Plaintiff David Annunziato (the “Plaintiff’) filed a complaint seeking redress for the alleged illegal practices of the Defendant Collecto, Inc. d/b/a EOS CCA (the “Defendant”) in connection with the collection of a debt allegedly owned by the Plaintiff in violation of the Fair Debt Collection Practices Act, 15 U.S.C. § 1692, et seq. (“FDCPA”). Presently before the Court is a motion by the Plaintiff for an order permitting this case to proceed as a class action against the Defendant pursuant to Federal Rule of Civil Procedure (“Fed. R. Civ. P.”) 23. Also before the Court is the Plaintiffs motion to amend the complaint pursuant to Fed.R.Civ.P. 15. For the reasons that follow, the Court grants the Plaintiffs motions.

I. BACKGROUND

David Annunziato (the “Plaintiff’) is a citizen of New York State and allegedly owes a debt to the New York Institute of Technology (“NY Tech”). This debt is allegedly for the purchase of household and personal products and for school tuition. The total debt alleged is $4,609.29. However, according to the Plaintiff, he has not attended N.Y. Tech [332]*332in more than sixteen years and, therefore, “[t]he alleged debt, if owed, is well outside the time period permitted to report the alleged debt to any consumer reporting agencies.” (Compl., ¶ 15.) Consequently, the alleged debt should not be reported on the Plaintiffs credit reports.

On an unspecified date, N.Y. Tech hired the Defendant to collect the debt allegedly owed by the Plaintiff. To that end, on or about May 16, 2012 the Defendant sent a form letter to the Plaintiff appearing on the letterhead of EOS CCA. (Compl., Ex. A.)

The form letter that the Defendant sent to the Plaintiff details the debt as follows:

Principal: $3,226.50
Interest: $0.00
Fees/Coll Costs: $1,382.79
Other Accounts: $0.00
Total Due: $4,609.29

(Compl., Ex. A.) The Plaintiff contends that the demanded “Fees/Coll Costs” were not incurred by either N.Y. Tech or the Defendant. Instead, according to the Plaintiff, these costs were unearned, unreasonable and bear no relation to any actual damages incurred by N.Y. Tech or the Defendant for any goods or services supplied by them.

Thus, the Plaintiff takes issue with the form letter because it includes the additional Fees/Coll Costs, which he believes was arbitrarily created by N.Y. Tech and the Defendant in order to collect unearned fees and to intimidate the Plaintiff into paying the “Principal” for fear that he would otherwise be liable for more Fees/Coll Costs. The Plaintiff claims that the Defendant was aware that neither N.Y. Tech nor itself incurred the Fees/Coll Costs.

The form letter at issue also includes the following paragraph:

As a result of your continued failure to address the above reference account, we have informed our client that you have not paid this debt nor made arrangements to pay. Please be advised that our client has the right to take further steps to collect this account.

(Compl., Ex. A.) The Plaintiff claims that “[s]uch statement is false and deceptive, in that neither the Defendant nor N.Y. Tech have the right to take ‘further steps’ to collect the alleged debt.” (Compl., ¶24.) In this regard, according to the Plaintiff “no ‘further’ steps [ ] are legally permitted,” because “the alleged debt is outside the applicable statute of limitations, and the alleged debt is outside the period a debt can be reported on the Plaintiffs credit reports. (Compl., ¶24.) As such, the Plaintiff suggests that the form letter was designed to intimidate the Plaintiff “into paying a debt that is past the applicable statute of limitation, and past the time period to legally report onto the Plaintiffs credit report.” (Compl., ¶ 24.)

Form letters substantially similar or materially identical to the one that the Defendant sent to the Plaintiff were also allegedly sent to hundreds of consumers in New York. The Plaintiff alleges that by sending these letters the Defendant violated numerous provisions of the FDCPA, including 15 U.S.C. §§ 1692e, e(2), e(5), e(10), f, f(l) and g. The Plaintiff defines the class as

consisting of all persons who, according to [the Defendant’s records: (a) have mailing addresses within New York State; and (b) within one year before the filing of this action; (c) were sent a collection letter in a form materially identical or substantially similar to [the form letter sent by the Defendant to the Plaintiff]; and/or (d) were sent a written communication demanding “Fees/Coll Costs” in an amount that was unearned[,] unreasonable, unconscionable, and/or bore no relation—reasonable or otherwise—to any actual damages incurred by N.Y. Tech or [the Defendant for any goods or services supplied by N.Y. Tech and/or [the] Defendant for any work performed by or on behalf of N.Y. Tech and/or [the] Defendant; and (e) which was not returned by the postal service as undelivered.

(Compl., ¶ 31.)

On April 3, 2013 the Plaintiff moved to file an amended complaint. In the amended complaint, the Plaintiff clarified that EOS CCA, which as stated above, was used on the letterhead for the form letter, “had no corporate structure” and was “merely a d/b/a/ of [333]*333... the Defendant.” (Amend.Compl., ¶¶ 19, 20.) The Plaintiff further clarified that the Defendant was licensed as a debt collection agency by the New York City Department of Consumer Affairs and was a Massachusetts business corporation registered with the New York State Department of State.

In addition, the amended complaint explained that the Fees/Coll Costs” represented forty-two percent of the Plaintiffs principal debt and thirty percent of his total debt due. Finally, the amended complaint streamlined the definition of the class as follows:

[The class shall] consist[] of: (a) all individuals who have mailing addresses within New York State; and (b) within one year before the filing of this action; (c) were sent a collection letter in a form materially identical or substantially similar to [the form letter sent by the Defendant to the Plaintiff]; (d) which was not returned by the postal service as undelivered.

(Amend.Compl., ¶38.) The amended complaint did not otherwise alter the facts asserted in the original complaint.

II. THE PLAINTIFF’S MOTION TO AMEND THE COMPLAINT

As the Plaintiffs unopposed motion to amend his complaint primarily seeks to refine the proposed class definition and renders moot some of the Defendant’s arguments in opposition to the Plaintiffs motion to class certification, the Court will consider it first. In this regard, Fed.R.Civ.P. 15(a) governs a motion to amend a complaint and states, in relevant part, as follows:

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Cite This Page — Counsel Stack

Bluebook (online)
293 F.R.D. 329, 2013 WL 4045810, 2013 U.S. Dist. LEXIS 113073, Counsel Stack Legal Research, https://law.counselstack.com/opinion/annunziato-v-collecto-inc-nyed-2013.