Judge Arthur Spatt
By an April 2007 agreement with Mercedes Benz Financial Services (MBFS), Sodhi guaranteed the financing of his parents' leased vehicle. The account went into default. American Coradius International (ACI) attempted collection. A 2012 agreement settled Sodhi's claims MBFS violated the Fair Debt Collection Practices Act (FDCPA). Sodhi agreed not to file complaints or charges relating to the proposed litigation of the vehicle. In January 2013 MBFS allegedly breached the settlement pact by reporting the alleged debt to credit bureau Transunion. Sodhi's Feb. 26, 2013, suit alleged MBFS's violation of the FDCPA, its breach of the settlement agreement and negligence. Denying Sodhi's motion to remove all references to ACI and "clarify that the sole FDCPA violation at issue was [MBFS's] actions in reporting the trade line,"district court dismissed Sodhi's complaint. MBFS was not a "debt collector" under the FDCPA. Sodhi inadequately alleged MBFS acted as a "debt collector" for FDCPA purposes as to any claims accruing after the settlement agreement's execution. In dismissing Sodhi's breach claim the court observed that he pointed to no settlement provision whereby MBFS guaranteed that its tradeline would not appear on Sodhi's credit reports.
