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Nelson v. Santander Consumer USA, Inc.

Citations: 931 F. Supp. 2d 919; 2013 WL 1141009; 2013 U.S. Dist. LEXIS 40799Docket: No. 11-cv-307-bbc

Court: District Court, W.D. Wisconsin; March 7, 2013; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, a consumer, brought legal action against Santander Consumer USA, Inc. and associated entities, alleging violations of the Fair Debt Collection Practices Act (FDCPA), Telephone Consumer Protection Act (TCPA), Wisconsin Consumer Act, and Wisconsin common law following the repossession of her vehicle and over 1,000 collection calls made to her cellular phone. The court granted partial summary judgment in favor of the plaintiff regarding the TCPA violations, awarding $571,000 in statutory damages due to unauthorized calls made using an automatic dialing system. The court also awarded $1,000 under the Wisconsin Consumer Act for improper repossession procedures. Both parties filed motions for partial summary judgment, and the court denied defendant's motion on the FDCPA claim, recognizing Santander as a debt collector since it acquired the defaulted loan. Additionally, attempts by Santander to amend its pleadings to include a consent defense were denied, as it failed to show good cause for the delay, which would prejudice the plaintiff. The court's findings highlighted the defendant's failure to comply with statutory requirements for repossession and the use of unauthorized communications, culminating in substantial statutory damages for the plaintiff.

Legal Issues Addressed

Amendment of Pleadings in Response to Summary Judgment

Application: The court denied defendant's motion to amend its answer to include a consent defense, finding no good cause for the delay and potential prejudice to the plaintiff.

Reasoning: Consequently, the motion for leave to file an amended answer is denied, preventing consideration of the defendant's consent argument.

Automatic Telephone Dialing System Definition

Application: The court recognized the FCC's definition of 'automatic telephone dialing system' to include predictive dialers, which was used by the defendant to call the plaintiff.

Reasoning: The testimony establishes that the defendant used predictive dialers to call the plaintiff, a fact that the defendant does not contest.

Fair Debt Collection Practices Act (FDCPA) Classification

Application: The court determined that defendant Santander could be classified as a debt collector under the FDCPA since it acquired the loan after the plaintiff's default, aligning with established case law.

Reasoning: Ultimately, the court agreed with plaintiff's alternative argument that defendant could be classified as a debt collector since it acquired the loan after plaintiff defaulted, citing precedent that assignees of debts in default are considered debt collectors under the FDCPA, regardless of the ownership status of the debt.

Summary Judgment Standards under Federal Rule of Civil Procedure 56(a)

Application: Defendant's motion for partial summary judgment was denied due to evidence suggesting the loans might have been in default at the time of purchase, reflecting genuine disputes over material facts.

Reasoning: Defendant's motion for partial summary judgment is denied due to evidence suggesting the loans might have been in default at the time of purchase, aligning with Federal Rule of Civil Procedure 56(a) stipulating that summary judgment is granted only when there is no genuine dispute over material facts.

Telephone Consumer Protection Act (TCPA) Violations

Application: The court ruled that defendant's calls to plaintiff's cellular phone without consent violated the TCPA, rejecting the argument that 'called party' meant the intended recipient rather than the current subscriber.

Reasoning: The court rejected this interpretation, asserting that consent must originate from the current subscriber of the number.

Wisconsin Consumer Act Violations

Application: The court found that defendant violated the Wisconsin Consumer Act by failing to provide proper notice before repossessing the plaintiff's vehicle, leading to statutory damages.

Reasoning: The court determined that the defendant violated Wis. Stat. 425.206(1) by failing to satisfy any requirements before taking possession of the plaintiff's truck.