Facts

On Jan. 26, 2006 and Sept. 15, 2006, plaintiff Kevin Cook, received two debt collection letters from defendant Federal Credit Corp. addressed to him in Santa Rosa and Bakersfield. The first letter allowed plaintiff to choose between three options, including an option to refuse to pay the bill and realizing further efforts to collect the debt involuntarily. The letter warned plaintiff that failure to pay the debt would trigger defendant's filing of a 1099-C with the IRS and continuing in its collection efforts. The plaintiff sued defendant for violation of the Fair Debt Collection and Practices Act (FDCPA) and the Rosenthal Fair Debt Collection Practices Act.

PLAINTIFF'S CONTENTIONS:
The plaintiff contended it was illegal for defendants to use "federal" in its name because "federal" implied association with the United States. Defendant was therefore collecting private debts with the purpose of convincing plaintiff its collection was on behalf of the United States. The word "involuntary" in defendant's first letter also threatened legal action in violation of the FDCPA. No "identifiable event" required defendant to report a discharge of plaintiff's debt to the IRS.

DEFENDANT'S CONTENTIONS:
The defendant contended the passing of significant time during which plaintiff did not make a payment was an "identifiable event."

Damages

The plaintiff sought $5,000 in actual damages and an unspecified amount for emotional distress.

Result

After a bench trial, Judge James Larson ruled for defendant, finding: the word "federal" in defendant's name was not enough to imply association with the United States; the term "involuntary" in the letter did not imply legal action in violation of FDCPA; and notification of the requirement to report discharge of Cook's debt was not false.