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The 11th Circuit released its decision in Hunstein v. Preferred Collection and Management Services Inc., a Tampa-based collection agency for 35 years.
—David Kelley
TAMPA, FLORIDA, USA, Sept. 12, 2022 /EINPresswire.com/ — On September 8, 2022, the 11th Circuit finally released its decision in Hunstein v. Preferred Collection and Management Services Inc., a 35-year-old Tampa company. Recovering agency. The court reversed the district court’s order that the plaintiff in the case had standing under Article III. In the opinion of the majority court, they wrote:
“The Supreme Court has since endorsed our approach. In TransUnion, the Court reiterated that harm caused by a violation of law must be “real” to be concrete, and that one way to tell if harm is real is to compare it to harm repaired in a traditional common law tort. . The Court also used the same approach as us – comparing the elements – to determine whether the harm caused by a new violation of the law was similar to that asserted by an old tort claim. Viewed as a means of assessing whether actual harm has occurred, this approach makes sense – if the items don’t match, how could harm resulting from those items occur? »
The case, which spans more than 18 months, has paved the way for thousands of other copycat cases across the country against collection agencies in Tampa and across the United States that use a vendor mail and automate the sending of letters. The case has now been dismissed without prejudice.
Preferred has worked with ACA International and various other stakeholders to defend this case due to potential consequences in the ARM industry. “ACA International appreciates the Board’s leadership and support for the use of the Industry Advancement Fund to help the ACA member fight this case and for everyone involved to ultimately get a sound decision for the accounts receivable management industry,” said ACA’s CEO. Scott Purcell.
Preferred, defended by Robert Vigh, Solomon, Vigh & Springer, PA, was first sued in the United States District Court for the Central District of Florida. The district court granted Preferred Collection’s motion to dismiss, finding no violation because the communication to the mail seller was not “in connection with the collection of a debt” as required by liability under the law. Hunstein appealed to the 11th Circuit.
Preferred then added attorney Rick Perr, Kaufman Dolowich Voluck LLP, to its defense team with the help and support of ACA International. On April 21, 2021, a panel of 3 judges from the 11th Circuit backtracked, but not before requesting an additional briefing on the position. Huntstein v. Preferred Collection & Mgmt. Servs., Inc., 994 F.3d 1341, 1344–45 (11th Cir. 2021). Various Amicus briefs were submitted after Preferred filed its motion to ask the court to grant a rehearing in full court. Shay Dvoretzky, a partner at Skadden, Arps, Slate, Meagher & Flom LLP, joined Preferred’s defense. In October 2021, a panel of 11th Circuit judges who issued the original opinion to Hunstein issued a new panel opinion in response to Preferred’s motion confirming their original decision, but the full court then voted to take the case en banc and rehear the case in February.
David Kelley, President and CEO of Preferred, said of the decision: “We are very grateful for the decision of the Court of Appeals for the 11th Circuit and we believe that it is fair and just. We are also very grateful to everyone who stood behind us and alongside us and carried a load that we could not bear on our own. The leadership of ACA International has been an incredible blessing to us in their guidance, resources and planning, which has enabled us all to present a defense that has protected our industry and many other industries against what we thought was a unfair legal action. against us. Our legal counsel, Shay Dvoretzky, who represented us before the 11th Circuit, and Richard J Perr and Robert Vigh, who represented us prior to our presence in the 11th Circuit, ALL have done an outstanding job of representing the truth with passion and professionalism. . We now hope that we can fully focus on serving our amazing customers and their patients.”
It is not known at this time whether the plaintiff will ask the Supreme Court to reconsider this case. For now, it looks like any similar claims will have to be brought in state courts.
For more information about Preferred Group of Tampa and Preferred Collection and Management Services Inc., please visit www.preferredgroupoftampa.com or call (800) 741-0802. Additionally, Tampa’s favorite band’s new location can be visited at 8875 Hidden River Parkway, Suite 100, Tampa, FL 33637.
David Kelly
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