McCall v. Drive Financial Services, LP

440 F.Supp.2d 388 (E.D. Pa. 2006)

A Texas based sub-prime auto lender sought to improve collections by sending out bogus collection letters on fake lawyer letterhead saying their debt "has been referred to" the lawyer's firm.  But the lawyer was an employee of the finance company, did not have a firm and had no role in sending the letter that went out over his name.  The letter also threatened judgment and wage garnishment, even though Pennsylvania law does not permit wage garnishment for auto finance debts.  The federal court sitting in Philadelphia certified a class on contest, granted the consumer's motion clarifying the maximum recovery under the Fair Debt law, and later approved a class-wide settlement that paid over $1300 to each consumer who was sent such a letter. The bank also agreed to discontinue using the deceptive form of collection letters.