Eleventh Circuit Vacates FDCPA Ruling, Will Rehear Case En Banc

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In the latest development in Hunstein v. Preferred Collection and Management Services, Inc., Case No. 19-14434, the full Eleventh Circuit Court of Appeals has vacated the previous panel’s opinion and will rehear the case en banc at a later date. In the original Hunstein opinion, the court reversed the dismissal of an action brought under the Fair Debt Collection Practices Act (“FDCPA”) that alleged a debt collector had violated the third-party disclosure provisions of the FDCPA by using a third-party mail vendor. The decision sent shockwaves through the debt collection industry and prompted a motion for rehearing and numerous amicus briefs. The court subsequently granted a motion for rehearing and issued a new opinion. However, the new opinion largely adopted the reasoning of the original opinion, and the holding remained essentially the same. Now, in a surprising move, the court has sua sponte issued an order vacating the previous opinion and ordered the case to be reheard en banc. Given the potential ramifications to the debt collection industry, this case will continue to be closely watched.

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