Maynard v. Cannon
401 F. App'x 389
| 10th Cir. | 2010Background
- Household Financial loan to Judith Maynard for $131,536; security deed of trust with power of sale.
- March 2004: deed of trust transferred to Cannon as trustee; Maynard not immediately informed.
- Cannon filed a notice of default and initiated a non-judicial foreclosure under Utah law.
- March 25, 2004: FDCPA notice included; Maynard disputed debt on April 7, 2004.
- April 12, 2004: Cannon provided loan documents and stated amount $131,536.06; no further contact after.
- June 2004: Cannon withdrew the notice of default; Maynard later settled with Household; Maynard sued Cannon in April 2005.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Is Cannon a debt collector under the FDCPA? | Maynard: Cannon is a debt collector for purposes of FDCPA. | Cannon: Not a debt collector; enforcement of security interest is outside FDCPA. | Cannon is a debt collector for FDCPA purposes. |
| Does non-judicial foreclosure constitute debt collection under the FDCPA? | Maynard: non-judicial foreclosure constitutes debt collection activity. | Cannon: enforcement of security interests is outside FDCPA; some courts draw distinction. | Assuming coverage, no FDCPA violation occurred here. |
| Did the April 12, 2004 letter violate FDCPA provisions 1692g, 1692f(1), or 1692e(2)(A)? | Maynard: letter failed verification, overstated amount, and misrepresented debt status. | Cannon: letter identified the default basis and amount; verification goal and amounts were appropriate. | Letter complied with FDCPA; no violation of 1692g, 1692f(1), or 1692e(2)(A). |
Key Cases Cited
- Piper v. Portnoff Law Assocs., Ltd., 396 F.3d 227 (3d Cir. 2005) ( FDCPA applicability to debt collection activities and letters)
- Gburek v. Litton Loan Servicing LP, 614 F.3d 380 (7th Cir. 2010) (debt collection communications and purpose of letters)
- Rosado v. Taylor, 324 F. Supp. 2d 917 (N.D. Ind. 2004) (FDCPA applicability to foreclosure-related notices)
- Wilson v. Draper & Goldberg, P.L.L.C., 443 F.3d 373 (4th Cir. 2006) (FDCPA applies to attorney actions in non-judicial foreclosure)