94 F.4th 665
7th Cir.2024Background
- Bank of America sold a consumer debt account, with an asserted balance of $5,246.21, to CACH, LLC.
- CACH attempted to collect the debt without disclosing that Bank of America had not verified the accuracy of the debt balance.
- Gabriel Brown, the alleged debtor, and her brother Ivan Brown (who impersonated her in one call), sued CACH for violating the Fair Debt Collection Practices Act (FDCPA), specifically 15 U.S.C. §1692e.
- The Browns alleged no monetary payment to CACH, no credit score decrease, nor any other concrete loss; Gabriel stated she interrupted her self-employment to review records regarding the debt.
- The district court, after requesting additional evidence of actual injury, found the Browns had not provided such evidence and dismissed the case for lack of standing.
- The Browns appealed the dismissal, contending interruption of self-employment constituted sufficient injury.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether interruption of self-employment alone constitutes injury for standing under the FDCPA | Interrupting her self-employment to investigate the debt sufficed as concrete injury | No evidence of actual loss or injury from the interruption was provided | Interruption alone is not enough; actual injury must be proven. |
| Requirement of evidence at summary judgment | Sufficient to allege a plausible injury | Summary judgment demands evidence | Plaintiffs must provide evidence, not just allegations, at summary judgment. |
| Reliance on district court cases for injury standard | District court cases support their standing | Higher authority requires concrete injury with evidence | District court cases do not control; Supreme Court and Circuit precedents apply. |
Key Cases Cited
- TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2022) (standing requires a concrete injury, even if statute authorizes statutory damages)
- Spokeo, Inc. v. Robins, 578 U.S. 330 (2016) (plaintiff must allege a concrete and particularized injury to have standing)
- Baysal v. Midvale Indemnity Co., 78 F.4th 976 (7th Cir. 2023) (reaffirms need for concrete injury for standing)
- Lujan v. Defenders of Wildlife, 504 U.S. 555 (1991) (summary judgment requires evidence of injury, not just allegations)
- Dieffenbach v. Barnes & Noble, Inc., 887 F.3d 826 (7th Cir. 2018) (delay or loss of income can be a form of injury, but evidence is necessary)
- Schacht v. Wisconsin Dep't of Corr., 175 F.3d 497 (7th Cir. 1999) (summary judgment is the time for "put up or shut up")