Safeguard Properties Litigation Allowed Under FDCPA

Litigation Against Safeguard Under FDCPA Given Green Light

The Cook County Record is reporting that a federal lawsuit against Safeguard Properties may go forward with respect to claims under the Illinois Consumer Fraud Act as well as under the federal Fair Debt Collections Practices Act. In part, here is what they had to say,

CHICAGO – A federal judge has allowed a lawsuit brought by three plaintiffs who allege a foreclosure property management company violated federal and Illinois state laws for the way the company treated them and their property when the owner fell behind on payments.

U.S. District Court Judge Matthew F. Kennelly denied a motion by Safeguard Properties Management to dismiss allegations by Laura Griffin, Tony Parsons and Sandy Klost. Safeguard had asserted the plaintiffs had failed to state a claim.

Among other matters, Safeguard argued that the plaintiffs’ claim under the federal Fair Debt Collection Practices Act was deficient because the three failed to adequately allege that Safeguard is a debt collector as defined by the federal statute.

“The court disagrees,” Kennelly said in his four-page memorandum and order issued July 19. “The statute defines a debt collector as including anyone who regularly collects or attempts to collect consumer debts, either directly or indirectly.”

You may read the entire article here. Below is the Memorandum Opinion and Order.

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