October 22, 2018 / 11:57 PM / 25 days ago

Debt collector waived arbitration rights with delay - 7th Circuit

A debt collection company hired by a bank to collect a Sam’s Club credit card debt from one of its customers waived any right to enforce an arbitration agreement between the customer and the bank by fighting the customer in court for more than a year before seeking to compel arbitration, a federal appeals court has ruled.

A three-judge panel of the 7th U.S. Circuit Court of Appeals on Monday upheld a lower court decision in favor of Francina Smith, who is suing GC Services LP for allegedly violating the federal Fair Debt Collection Practices Act by demanding that she contest the bank’s claim in writing.

To read the full story on Westlaw Practitioner Insights, click here: bit.ly/2q72i3G

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