Utah federal district court grants motion to compel arbitration filed by Simmonds & Narita client in putative class action alleging debt buyer violated FDCPA by allegedly failing to comply with state license requirements
The defendant acquired the plaintiff’s auto deficiency balance and obtained a judgment in state court for the unpaid amount. The plaintiff filed a putative class action alleging the defendant had attempted to collect the deficiency without maintaining purportedly required state licenses. The defendant filed a motion to compel arbitration under the arbitration provision in the agreement. The plaintiff argued that the defendant had waived its right to compel arbitration by pursuing the state court litigation. The federal court rejected the argument, granted the motion, and stayed the case.