Representative Matters
California state court grants motion to compel arbitration filed by Simmonds & Narita client in putative class action alleging letter sent to plaintiff violated the California Fair Debt Buyer’s Act
The defendant purchased the plaintiff’s charged-off credit card debt and retained an agency to recover the unpaid balance. The agency sent the plaintiff a letter that allegedly failed to include certain notices required under the California Fair Debt Buyer’s Act in the correct font size. The plaintiff filed a putative class action in state court alleging the defendant violated the Act. The defendant filed a motion to compel arbitration under the arbitration provision in the plaintiff’s credit card agreement. The court granted the motion and stayed the case.
The court overruled the plaintiff’s objections to the defendant’s evidence and held that defendant had established the plaintiff was bound by the card agreement and arbitration provision contained therein. The court also held that the defendant was entitled to enforce the arbitration provision as a third-party beneficiary to the agreement and as an assignee of the account.