Lawyers Representing Debt Collection Agencies Sued By District Attorney For Unfair Business Practices.

A district attorney filed a civil action against a debt collection company and its lawyers alleging violations of the Rosenthal Fair Debt Collection Practices Act [Civil Code section 1788] and the Federal Fair Debt Collection Practices Act [15 U.S.C. § 1692]. The People set forth one cause of action, violation of California’s Unfair Competition Law [Business & Professions Code sections 17200]. According to the People, the letters sent by the company’s lawyers are misleading and unlawfully threaten postjudgment remedies to which the company is not entitled, and, in the collection actions, published personal information about the debtors, including social security numbers and driver’s license numbers. The trial court concluded the complaint is barred by the litigation privilege because the alleged conduct consisted of communications and acts related to judicial proceedings, and sustained the defendants’ demurrer without leaving to amend. Stating, “The People’s unfair competition law claims that are specifically prohibited conduct are not barred by the litigation privilege,” the appellate court reversed and remanded for further proceedings.  People v. Persolve, LLC (Cal. App. Fifth Dist.; August 15, 2013) 218 Cal.App.4th 1267, [160 Cal.Rptr.3d 841].