Johns v. Northland Group, Inc.

76 F. Supp. 3d 590, 2014 U.S. Dist. LEXIS 178625, 2014 WL 7404131
CourtDistrict Court, E.D. Pennsylvania
DecidedDecember 31, 2014
DocketCivil Action No. 14-2947
StatusPublished
Cited by26 cases

This text of 76 F. Supp. 3d 590 (Johns v. Northland Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johns v. Northland Group, Inc., 76 F. Supp. 3d 590, 2014 U.S. Dist. LEXIS 178625, 2014 WL 7404131 (E.D. Pa. 2014).

Opinion

OPINION

SLOMSKY, District Judge.

I. INTRODUCTION

This case arises out of Defendant North-land Group, Inc.’s attempt to collect on a debt Plaintiff Gayle J. Johns owed to Bloomingdale’s and Macy’s. Plaintiff contends that collection of the debt was time-barred under the relevant statute of limitations. In addition, Plaintiff alleges that Defendant’s communications with Plaintiff regarding the debt violated provisions of the Fair Debt Collection Practices Act (FDCPA).

Plaintiffs Complaint was originally filed in state court and was removed by Defendant to this Court on May 23, 2014. (Doc. No. 1.) Dn July 2, 2014, Defendant filed a Motion to Dismiss. (Doc. No. 6.) Plaintiff Responded to the Motion on July 17, 2014. (Doc. No. 7.) For reasons that follow, the Court will dismiss the Complaint.

II. FACTUAL BACKGROUND

On June 7, 2013, Plaintiff received a • letter from Defendant, a company that handles debt collection matters. (Doc. No. 1, Ex. A, ¶¶ 2, 14). The letter was sent in regard to Plaintiffs account with Bloomingdale’s. {Id. at 13.) The top right corner of the letter stated:

ACCOUNT INFORMATION
Creditor: Department Stores National Bank
Store Name: Bloomingdale’s Original Account #: ❖ * $ * ‡ $ # *1561

(Id.) The letter stated in the middle of the page:

Your Past Due Account Balance $1,936.67
Your Settlement Offer $1,258.86

(Id.) The content of the letter reads as follows:

Bloomingdale’s will allow you to settle your account for $1,258.86 in 3 payments starting on 6/28/13. We are not obligated to renew this offer. The payment can be no more than 30 days apart. Once all three payments have been paid to our office on time, a letter will be sent confirming the above referenced account has been resolved. Please send in the payments along with a payment stub to the address below. Make check payable to DSNB.
This is an attempt to collect a debt by. a debt collector and any information obtained will be used for that purpose. This communication is sent to you by Northland Group, Inc., a debt collector and a member of ACA International. This collection agency is licensed by the Minnesota Department of Commerce.

(Id.)

On December 10, 2013, Plaintiff received another letter from Defendant in reference to her account with Macy’s. Like the June 7, 2013 letter, the top right corner provided the following information:

ACCOUNT INFORMATION
[593]*593Creditor: Department Stores National Bank
Store Name: Macy’s Original Account #: ******* *5936

(Doc No. 1, Ex. A, at 12.) The letter stated in the middle of the page:

Your past due account balance: $8,993.20
Your settlement offer: $4,046.94

The balance of the letter reads as follows:

Dear Gayle D Johns,
The above referenced Macy’s account has been assigned to Northland Group, Inc. for collection. Macy’s is willing to reduce your balance by offering you a settlement. We are not obligated to renew this offer. Upon receipt and clearance-of $4,096.94, a letter will be sent confirming the above referenced ac- ' count has been resolved. This offer does not affect your rights set forth ■below. Make check payable to DSNB. Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days after receiving this notice that you dispute the validity of this debt or any portion of it, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification. If you request of this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from the current creditor.
Please read this important notice from your creditor: Whenever $600 or more in principal of a debt is forgiven as a result of settling a debt for less than the balance owing, the creditor may be required to report the amount of the debt forgiven to the Internal Revenue Service on a 1099C form, a copy of which would be mailed to you by the creditor. If you are uncertain of the legal or tax consequences, we encourage you' to consult your legal or tax advisor.

(Doc. No. 1, Ex. A, at 12.)

In addition to receiving these letters, Plaintiff alleges that Defendant made “numerous, offensive phone calls” attempting to qollect on the debt, including “calling [her] friends and family members to discuss the alleged debt and improperly seeking information regarding the alleged debt.” (Doc. No. 1, Ex. A, ¶ 18.)

After receiving the two' letters and phone calls, Plaintiff filed an action against Defendant alleging that collection on the debt was time-barred under Pennsylvania law, 42 Pa.C.S.A. § 5525(a), and that Defendant’s collection attempts violated provisions of the FDCPA, 15 U.S.C. § 1692. As evidence of the FDCPA violations, Plaintiff argues that Defendant did not clearly identify the creditor in the two letters and made misrepresentations about the legal status of the debt. Plaintiff also states that “Defendant provide[d] no information ... as to how it would redeem Plaintiffs credit or what changes it would make with the credit reporting agencies.” (Doc. No. 1, Ex. A, ¶ 16.) Finally, Plaintiff argues that the phone calls "she' received from Defendant were improper and violated the FDCPA.1

[594]*594In its Motion to Dismiss, Defendant submits as a threshold matter that Plaintiff failed to plausibly allege that the debt at issue is the type of debt covered under the FDCPA. Defendant also argues that it is permissible to seek voluntary repayment of the debt from Plaintiff even if the debt was time-barred under Pennsylvania law. Finally, Defendant avers that Plaintiff failed to establish that the letters or the phone calls were improper under the FDPCA. For reasons that follow, the Court will grant the Motion to Dismiss the Complaint in its entirety.

III. STANDARD OF REVIEW

The motion to dismiss standard under Federal Rule of Civil Procedure 12(b)(6) is set forth in Ashcroft v. Iqbal, 556 U.S. 662, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009). After Iqbal it is clear that “threadbare recitals of the elements of a cause of action, supported by mere conclusory statements do not suffice” to defeat a Rule 12(b)(6) motion to dismiss. Id. at 663, 129 S.Ct. 1937; see also Bell Atl. Corp. v. Twombly, 550 U.S. 544, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007).

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Cite This Page — Counsel Stack

Bluebook (online)
76 F. Supp. 3d 590, 2014 U.S. Dist. LEXIS 178625, 2014 WL 7404131, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johns-v-northland-group-inc-paed-2014.