In Scott v. Collecto, Inc., the plaintiff filed a complaint in state court alleging a violation of the Fair Debt Collection Practices Act (FDCPA) and common law negligence based on the defendant’s use of a letter vendor to send the plaintiff a demand. The County Court of Florida found that the plaintiff failed to allege an injury sufficient to establish standing.

The lawsuit arose out of the defendant utilizing a third-party letter vendor to send the plaintiff a debt collection letter and by allegedly providing an incorrect deadline to dispute or request validation of the debt. The plaintiff did not explicitly allege a single injury from receipt of the letter, but instead relied on what she claimed she “justifiability fears” may happen in the future. The defendant filed a motion to dismiss based on lack of subject matter jurisdiction.

While the court acknowledged that Florida courts “are generally considered ‘tribunals of plenary jurisdiction,'” its jurisdiction has limits. Specifically, the Florida Supreme Court has identified three requirements for standing: an injury in fact, a causal connection between the injury and the defendant’s conduct, and a substantial likelihood that the requested relief will remedy the alleged injury. The court found that in this case the plaintiff had alleged a purely technical statutory violation with no resulting injury. “Plaintiff alleges when [the defendant] sent its August 17, 2022 letter to the plaintiff, [the defendant] utilized a third-party letter vendor and did not provide a proper validation deadline. Plaintiff, however, does not allege she was injured in any way by the alleged conduct — nor could she.”

While the plaintiff had alleged that she feared she may be injured in the future if the court did not intervene, the court found there was no “material risk of future harm” since the plaintiff had already received and read the letter and there had been no further collection attempts. Thus, the court granted the defendant’s motion to dismiss on all counts.

Photo of David N. Anthony David N. Anthony

David Anthony handles litigation against consumer financial services businesses and other highly regulated companies across the United States. He is a strategic thinker who balances his extensive litigation experience with practical business advice to solve companies’ hardest problems.

Photo of Stefanie Jackman Stefanie Jackman

Stefanie takes a holistic approach to working with clients both through compliance counseling and assessment relating to consumer products and services, as well as serving as a zealous advocate in government inquiries, investigations, and consumer litigation.

Photo of Jim Trefil Jim Trefil

James K. Trefil is counsel in Troutman Pepper’s Consumer Financial Services practice, with a primary focus on Financial Services Litigation. His practice includes the representation of clients in federal and state court, both at the trial and appellate level, with a focus on…

James K. Trefil is counsel in Troutman Pepper’s Consumer Financial Services practice, with a primary focus on Financial Services Litigation. His practice includes the representation of clients in federal and state court, both at the trial and appellate level, with a focus on areas of complex litigation, financial services litigation and consumer litigation. James has represented clients within these areas in a wide variety of litigation matters involving class actions, contracts, torts, and federal and state consumer protection laws.

Photo of Jonathan Floyd Jonathan Floyd

Jonathan is an associate in the Consumer Financial Services Practice Group, with a primary focus on financial services litigation. He represents clients in class actions and business disputes in both federal and state courts.