(PS) Ortiz v. Enhanced Recovery Company

CourtDistrict Court, E.D. California
DecidedDecember 17, 2019
Docket2:17-cv-00607
StatusUnknown

This text of (PS) Ortiz v. Enhanced Recovery Company ((PS) Ortiz v. Enhanced Recovery Company) is published on Counsel Stack Legal Research, covering District Court, E.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
(PS) Ortiz v. Enhanced Recovery Company, (E.D. Cal. 2019).

Opinion

1 2 3 4 5 6 7 8 UNITED STATES DISTRICT COURT 9 FOR THE EASTERN DISTRICT OF CALIFORNIA 10 11 RENE ORTIZ, No. 2:17-cv-0607 KJM DB PS 12 Plaintiff, 13 v. ORDER AND FINDINGS AND RECOMMENDATIONS 14 ENHANCED RECOVERY COMPANY, 15 Defendant. 16 17 Plaintiff is proceeding in this action pro se. This matter was, therefore, referred to the 18 undersigned in accordance with Local Rule 302(c)(21) and 28 U.S.C. § 636(b)(1). Pending 19 before the court are plaintiff’s motion for default judgment, motion for judgment on the 20 pleadings, motion to “apply laws,” and motion stay, as well as defendant’s motion for a protective 21 order, and motion for summary judgment. For the reasons stated below, the undersigned will 22 recommend that defendant’s motion for summary judgment be granted while denying all other 23 pending motions. 24 BACKGROUND 25 Plaintiff commenced this action on February 23, 2017, by filing a complaint in the 26 Sacramento County Superior Court against defendant Enhanced Recovery Company, LLC 27 (“ERC”). (ECF No. 1 at 4.) On March 22, 2017, defendant ERC removed the matter to this court 28 pursuant to federal question jurisdiction. (Id. at 2.) Plaintiff is now proceeding on a second 1 amended complaint. (ECF No. 31.) Therein, plaintiff alleges that in September of 2015, plaintiff 2 “purchased from Sprint the mobile cellular services . . . and a phone.” (Sec. Am. Compl. (ECF 3 No. 31 at 1.1) Plaintiff, however, “cancelled the services within 10 days of the purchase” by 4 “calling Sprint and . . . return[ing] the phone at the store where [plaintiff] purchased it in Oakland, 5 California.” (Id. at 1-2.) 6 “A few months later” plaintiff was contacted by an employee of Virtuoso Sourcing Group, 7 (“VSG”), “about the same Sprint account.” (Id.) The employee “kept badgering that VSG 8 needed proof [plaintiff] returned the phone.” (Id.) On February 15, 2016, plaintiff “sent 9 notification to VSG that [plaintiff] disputed the debt and to cease and desist from any form of 10 communication regarding the account[.]” (Id.) 11 Thereafter, VSG transferred “the invalid debt” to ERC. (Id. at 3.) On August 2, 2016, 12 ERC, “and its executive officers, [defendant] Kirk Moquin, and [defendant] Marty Sarim” sent 13 plaintiff “a notice dated August 2, 2016 .. . in an attempt to collect the same invalid debt.” (Id.) 14 Plaintiff “replied to ERC’s notice disputing the invalid debt timely,” and “informed ERC to cease 15 and desist,” although the date the reply was sent is not alleged.2 (Id.) However, on September 16 18, 2016, plaintiff received a “similar notice” from ERC “attempting to collect the invalid debt[.]” 17 (Id.) On September 23, 2016, “ERC reported the invalid debt to the credit reporting agency 18 (‘CRA’).” (Id.) 19 On September 26, 2016, plaintiff sent ERC a notice “informing ERC of their reporting 20 error and to remove the inaccurate reporting from the CRA[.]” (Id.) However, on September 28, 21 2016, ERC “re-reported or updated the same invalid debt to the CRA[.]” (Id.) That same day 22 plaintiff “applied for credit and was denied due to ERC[’s] reporting the invalid debt.” (Id. at 5.) 23 Plaintiff filed a complaint with the Consumer Financial Protection Bureau on October 6, 2016. 24 (Id. at 4.) 25

1 Page number citations such as this one are to the page number reflected on the court’s CM/ECF 26 system and not to page numbers assigned by the parties. 27 2 Attached to the second amended complaint appears to be a copy of the August 2, 2016 28 collection letter with handwritten notes. (Sec. Am. Compl. (ECF No. 31) at 13.) 1 In this regard, defendants “did not furnish information” that was “accurate and complete,” 2 or “investigate the dispute[.]” (Id. at 6.) Instead, defendants “reported and re-reported 3 [plaintiff’s] creditor information to CRA without proving the account was [plaintiff’s] 4 responsibility and that the balances [were] accurate.” (Id. at 7.) Based on these allegations the 5 second amended complaint asserts causes of action for violation of the Fair Credit Reporting Act, 6 15 U.S.C. § 1681 et seq., and the Fair Debt Collection Practices Act, 15 U.S.C § 1692 et seq. (Id. 7 at 5-7.) 8 Defendant ERC filed an answer on December 4, 2017. (ECF No. 32.) On August 1, 9 2018, defendants Kirk Moquin and Marty Sarim filed an answer. (ECF No. 48.) On April 23, 10 2019, defendants filed the pending motion for summary judgment. (ECF No. 70.) Due to 11 plaintiff’s failure to file a timely opposition, the undersigned issued plaintiff an order to show 12 cause on May 20, 2019. (ECF No. 77.) Plaintiff filed a response on May 21, 2019. (ECF No. 13 78.) Defendants filed a reply on May 24, 2019. (ECF No. 79.) Plaintiff filed a second response 14 on May 31, 2019. (ECF No. 82.) 15 DEFENDANTS’ STATEMENT OF UNDISPUTED FACTS 16 Defendants’ statement of undisputed facts, supported by citations to declarations, exhibits, 17 and plaintiff’s failure to respond to defendants’ requests for admissions, establishes in relevant 18 part the following. On August 1, 2016, ERC was retained by Sprint to collect from plaintiff a 19 debt in the amount of $1,553.06. On August 2, 2016, ERC sent a collection letter to plaintiff 20 notifying plaintiff that plaintiff’s account had been placed with ERC for collections and offering 21 plaintiff a settlement at a reduced rate. ERC did not receive a response to the August 2 letter and 22 could not reach plaintiff by phone despite calls to several telephone numbers associated with 23 plaintiff. (Defs.’ SUDF (ECF No. 70-1) 1-4.3) 24 On September 15, 2016, ERC sent another collection letter to plaintiff. On October 3, 25 2016, ERC received a letter dated September 26, 2016 from plaintiff wherein plaintiff demanded 26 that ERC “remove that account from my credit report immediately, and to cease and desist all 27

28 3 Citations here are to defendants’ specific numbered undisputed fact asserted. 1 collection action.” Plaintiff requested verification of the debt in the October 3, 2016 letter. On 2 October 4, 2016, the day after ERC received Plaintiff’s September 26, 2016 letter, ERC 3 immediately ceased collection activities and sent verification of the Sprint debt to Plaintiff. 4 ERC’s only notice of plaintiff’s dispute regarding the debt was from plaintiff. ERC did not 5 receive notice from a CRA that plaintiff disputed the debt. (Defs.’ SUDF (ECF No. 70-1) 5-10.) 6 On October 4, 2016, ERC conducted research to determine the validity of plaintiff’s 7 dispute. ERC determined that on September 22, 2015, plaintiff disputed the equipment charges 8 directly with Sprint and Sprint advised plaintiff that he would need to provide proof the 9 equipment was returned. Plaintiff never provided proof to Sprint and Sprint determined that the 10 dispute was invalid. ERC marked the account as disputed but noted that the dispute was invalid 11 based upon its research of the Sprint account. ERC updated plaintiff’s account as disputed and 12 placed the account in an investigatory status to prevent further collection efforts. (Defs.’ SUDF 13 (ECF No. 70-1) 12-15.) 14 On October 6, 2016, plaintiff submitted a complaint to the CFPB to complain about 15 ERC’s collection activities. On October 9, 2016, ERC submitted a request to the credit reporting 16 agencies to delete the Sprint debt from plaintiff’s credit report. On October 19, 2016, ERC 17 responded to plaintiff’s CFPB complaint. In response to plaintiff’s claim that ERC reported 18 inaccurate dates to the credit reporting agencies, ERC explained that it provided only two dates to 19 the credit reporting agencies: the open date of August 1, 2016 and the delinquency date of June 20 25, 2015.

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(PS) Ortiz v. Enhanced Recovery Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ps-ortiz-v-enhanced-recovery-company-caed-2019.