Judge Lorna Schofield
Lee is an elderly, low income, tenant of a rent controlled apartment. Mall Properties Inc. (MPI) is managing agent for Lee's landlord. Law firm Kucker & Bruh (K&B) is a debt collector as defined by the Fair Debt Collection Practices Act (FDCPA). Since 1995 Lee has had a Senior Citizen Rent Increase Exemption (SCRIE) freezing his rent and granting his landlord a tax credit in the amount of any increases. Despite his SCRIE K&B filed a nonpayment proceeding against Lee, claiming that he owed rent increases and past fuel charges. After MPI confirmed Lee's SCRIE, the housing court dismissed the eviction proceedings, and awarded Lee attorney fees. In Lee's federal action charging K&B's violation of §1692e(2)(A) of the FDCPA by trying to collect a debt not actually due or owed, district court confirmed that the FDCPA is a strict liability statute and further rejected defendants' bona fide error defense under 15 USC §1692k(c). The court noted K&B's lack of procedures to identify—or clarify—anomalies in facially suspect documents received from recent client MPI. Noting K&B's blind reliance on client business records maintained in the regular course of business, the court found the absence of procedures to avoid discoverable errors clearly inadequate.
