Charles

Overview

This case presents an issue of first impression in this circuit: whether a third-party debt collector’s efforts to collect a dishonored check are governed by the Fair Debt Collection Practices Act (“FDCPA” or “the Act”), 15 U.S.C. §§ 1692 -1692o. The district court ruled that the FDCPA does not apply to efforts to collect a dishonored check, because a dishonored check is not a “debt” under the FDCPA.

The only federal court of appeals that has considered this question is the Seventh Circuit. In a well-reasoned and persuasive opinion, that court recently held that a dishonored check is a “debt” under the FDCPA. Bass v. Stolper, Koritzinsky, Brewster & Neider, S.C., 111 F.3d 1322 (7th Cir.1997). We agree with its conclusion that, because “an offer or extension of credit is not required for a payment obligation to constitute a ‘debt’ under the FDCPA,” id. at 1326 , the FDCPA governs the collection of dishonored checks. We therefore reverse.

*741 Background

Sharolyn Charles (“Plaintiff’) brought suit against Check Rite Ltd., Alvin R. Lundgren, and Lundgren & Associates (collectively, “Defendants”), alleging that Defendants’ actions in attempting to collect a dishonored…