Court Denies Cross Motions For Summary Judgment In Current Balance Case

On May 18, a federal judge in Missouri denied cross motions for summary judgment on the issue of whether a letter that did not inform a debtor that interest was, in fact, accruing violated the FDCPA.

In Mygatt v. Medicredit, plaintiff Timberly Mygatt incurred medical debt that was being collected by Medicredit.  In order to collect on this debt, Medicredit sent two letters to Mygatt.  The first letter referenced a balance of $300.23, but it did not indicate whether the balance would increase.  The second letter referenced a balance of $308.28, again, without referencing whether the balance would increase.  As of the date of the second letter, Medicredit began assessing 9% interest on Mygatt's debt.  When Mygatt questioned the increase, Medicredit informed her that interest accrued once the claim was placed with Medicredit for collections and not with the original creditor.