Representative Matters
State court enters judgment after trial in favor of clients of Simmonds & Narita on credit reporting and Rosenthal Act claims
After a four-day bench trial, the San Diego Superior Court entered judgment in favor of the firm’s debt buyer client and its servicer, and against a consumer, who had alleged inaccurate credit reporting violations under section 1785.25(a) of the California Civil Code, and improper collection activity in violation of section 1788.17 of the Civil Code (the Rosenthal Act). The court held that the servicer did not overstate the amount of the debt in any of its communications with the consumer or with the consumer reporting agencies, and it rejected the debtor’s argument that when the original creditor decided not to charge interest after charge-off this resulted in a “waiver” of the right to seek interest. The Court also entered judgment in favor of the firm’s debt buyer client on its breach of contract and open book account claims against the consumer, and held the debt buyer was entitled to recover costs and attorney’s fees.