Shaji Hubbard v. Community Choice Credit Union and Holzman Law, PLLC

CourtDistrict Court, E.D. Michigan
DecidedMarch 18, 2026
Docket2:25-cv-11629
StatusUnknown

This text of Shaji Hubbard v. Community Choice Credit Union and Holzman Law, PLLC (Shaji Hubbard v. Community Choice Credit Union and Holzman Law, PLLC) is published on Counsel Stack Legal Research, covering District Court, E.D. Michigan primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Shaji Hubbard v. Community Choice Credit Union and Holzman Law, PLLC, (E.D. Mich. 2026).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF MICHIGAN SOUTHERN DIVISION

SHAJI HUBBARD,

Plaintiff, Case Number 25-11629 v. Honorable David M. Lawson Magistrate Judge Kimberly G. Altman COMMUNITY CHOICE CREDIT UNION, and HOLZMAN LAW, PLLC,

Defendants. __________________________________________/

OPINION AND ORDER OVERRULING PLAINTIFF’S OBJECTIONS IN PART, ADOPTING IN PART AND REJECTING IN PART REPORT AND RECOMMENDATION, GRANTING DEFENDANT COMMUNITY CHOICE CREDIT UNION’S MOTION TO DISMISS, GRANTING IN PART DEFENDANT HOLZMAN LAW’S MOTION TO DISMISS, AND CONTINUING REFERRAL

Plaintiff Shaji Hubbard filed a complaint without the assistance of an attorney alleging that a credit union and a law firm violated several debt collection laws when they attempted to collect on a default judgment entered against Hubbard by a Michigan district court. The Court referred the case to Magistrate Judge Kimberly G. Altman for pretrial management. Thereafter, each defendant filed a motion to dismiss the complaint. Judge Altman issued a report on January 23, 2026 recommending that the Court grant the motions and dismiss the case. The plaintiff filed timely objections to the report and recommendation, and the matter is now before the Court. I. A. Because the motions challenge the sufficiency of the complaint under Federal Rule of Civil Procedure 12(b)(6), all of the following facts are drawn from the operative pleading and are accepted as true. Eastep v. City of Nashville, Tennessee, 156 F.4th 819, 826 (6th Cir. 2025). According to the complaint, plaintiff Shaji Hubbard is a consumer residing in Hamtramck, Michigan. Compl., ECF No. 1, ¶6. Community Choice Credit Union (CCCU) is a financial institution that sued the plaintiff in Michigan’s 36th District Court. Id. at ¶7. Defendant Holtzman Law, PLC, represented CCCU in the state-court proceeding. Id. at ¶8.

The register of actions for the state-court proceeding attached to the plaintiff’s complaint, ECF No. 1, PageID.19-22, shows that Holzman Law filed a complaint on behalf of CCCU in the state court in May 2023. Id. at PageID.19. After multiple attempts at service on the plaintiff were unsuccessful, the state court authorized substituted service. Id. at PageID.19-20. The plaintiff never appeared, and a default judgment was entered against her in October 2023 in the amount of $4,624.74. Id. at PageID.20. The plaintiff alleges that she became aware of the default judgment on March 20, 2025. Compl., ECF No. 1, ¶9. She alleges that the judgment was “entered without proper service, jurisdiction, or lawful validation of the alleged debt.” Ibid. She filed motions objecting to CCCU’s garnishments and seeking to set aside the default judgment, all of which were denied by the state

court. Id. at ¶10. She also alleges that she sent repeated demands for validation of the debt to the defendants that went unanswered. Id. at ¶11-13. Moreover, the defendants allegedly “continued adverse actions, including garnishment, collection, and negative credit reporting, without lawful basis or validation, causing harm to Plaintiff.” Id. at ¶14. In June 2025, the plaintiff filed the present lawsuit against CCCU and Holtzman Law for alleged violations of the Fair Debt Collection Practices Act (FDCPA), Fair Credit Reporting Act (FCRA), and the Truth in Lending Act (TILA). The plaintiff also asserts a claim for dishonor under section 3-305 of the Uniform Commercial Code. ECF No. 1, PageID.10. The FDCPA claim is based on allegations that the defendants “violated 15 U.S.C. §§ 1692e(2)(A), (5), (10), and (14) by misrepresenting the legal status and amount of the alleged debt, and § 1692g by failing to validate the debt.” Ibid. For her FCRA claim, the plaintiff alleges that the defendants “violated 15 U.S.C. § 1681b by accessing and reporting Plaintiff’s consumer information without a permissible purpose” and “violated 15 U.S.C. § 1681s-2(b) by failing to properly investigate

Plaintiff’s disputes and continuing to report inaccurate information.” Ibid. The TILA and UCC claims, the recommended dismissal of which are not challenged in the present objections, respectively allege that the defendants violated TILA by failing to disclose material terms of a credit transaction, and that the plaintiff is discharged from further “enforcement” as a result of the defendants’ failure to respond to a “lawful conditional acceptance.” Ibid. The complaint seeks damages, an order deleting “all derogatory accounts related to this matter from Plaintiff’s consumer reports,” and vacatur of the state-court judgment. Ibid. Both defendants moved to dismiss the complaint. ECF No. 11, 12. B. Judge Altman recommended that the Court dismiss the complaint insofar as it sought

vacatur of the state court default judgment and the collection process the state court issued because those claims were barred by the Rooker-Feldman doctrine. Next, the magistrate judge concluded that the FDCPA claims should be dismissed because (1) “the complaint contains no allegations whatsoever about the source or validity of the debt or how the defendants violated the act”; (2) CCCU was not a “debt collector” under the statute; (3) the plaintiff did not allege any specific false or misleading representation, as is required to state a claim under 15 U.S.C. § 1692e; (4) Holzman Law’s alleged wrongful conduct was not among the practices prohibited by § 1692f; and (5) the alleged violations of § 1692g(b) were belied by a copy of the judgment that Holzman Law sent to the plaintiff, which the magistrate judge found was a proper verification of debt under that provision. The magistrate judge also recommended that the plaintiff’s FCRA claims be dismissed because the plaintiff’s allegation that the defendants accessed her credit report for an improper

purpose was a bare legal conclusion that could not be credited, Holtzman Law did not use the plaintiff’s information for an impermissible purpose because Holtzman Law was a debt collection law firm that would be permitted to use the plaintiff’s credit report for the purpose of collecting the judgment, and the allegation that the defendants violated 15 U.S.C. § 1681s-2(b) also were conclusory and did not provide sufficient factual detail to survive a motion to dismiss. Although the plaintiff attached additional documents in support of this claim to her response, the magistrate judge concluded that the documents were insufficient to cure the defects. The magistrate judge also recommended dismissal of the plaintiff’s TILA and UCC claims. Finally, the magistrate judge recommended denial of the plaintiff’s request for leave to amend under Federal Rule of Civil Procedure 15(a)(2) because the plaintiff made this request in

her opposition to the motion to dismiss, rather than in a separate motion, a practice that the Sixth Circuit has deemed improper. See Waskul v. Washtenaw Cnty. Cmty. Mental Health, 979 F.3d 426, 440 (6th Cir. 2020). II. The plaintiff filed three objections to the report and recommendation.

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Bluebook (online)
Shaji Hubbard v. Community Choice Credit Union and Holzman Law, PLLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaji-hubbard-v-community-choice-credit-union-and-holzman-law-pllc-mied-2026.