Can Plaintiffs Evade The FDCPA’s Cap On Total Statutory Damages In A Class Action By Filing Multiple, Gerrymandered Class Actions?

Keywords: Class Action Fairness Act, Class Certification, D. Me., Fair Debt Collection Practices Act, LaRocque v. TRS Recovery Servs. Inc., Mace v. Van Ru Credit Corp., removal, Seventh Circuit, Standard Fire Ins. Co. v. Knowles, Superiority

The Fair Debt Collection Practices Act (FDCPA), which regulates the conduct of debt collectors, authorizes plaintiffs suing over violations to recover statutory damages of up to $1,000. Because these amounts can rapidly add up to exorbitant numbers in a class action for very minor, technical violations, Congress capped the total amount of statutory damages that may be sought for the absent class members in a class action at the lesser of $500,000 or 1 percent of the debt collector's net worth. 15 U.S.C. § 1692k(a)(2)(B).