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Fair Debt Collection Practices Act Involving Inflated Proof of Bankruptcy Claim
In Simmons v. Roundup Funding, LLC, No. 09-4984, a Fair Debt Collection Practices Act action claiming that a creditor filed an inflated proof of claim in plaintiffs' bankruptcy, the court affirmed the dismissal of the complaint where a proof of claim filed in bankruptcy court cannot form the basis for a claim under the Fair Debt Collection Practices Act.
As the court wrote: "Lamont and Melissa Simmons ("the Simmons") allege that an inflated proof of claim filed by a creditor in their bankruptcy proceeding constituted a violation of the Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692m. They appeal from a judgment of the United States District Court for the Southern District of New York (Sweet, J.), dismissing their complaint on the pleadings. We hold that such a proof of claim cannot form the basis for a claim under the FDCPA, and therefore we affirm."
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