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Cloud Call Center Community Featured Article

TMCNet: Ruling in cell-phone bill case to be appealed

[October 30, 2009]

Ruling in cell-phone bill case to be appealed

EL PASO, Oct 30, 2009 (El Paso Times - McClatchy-Tribune Information Services via COMTEX) -- A national debt- collection company won a legal ruling in El Paso as it attempts to collect money that Sprint PCS customers allegedly owe.

However, law yers representing the plaintiffs challenged U.S. District Judge Frank Montalvo's ruling in an appeal to the U.S. 5th Circuit Court of Appeals of New Orleans. Lawyers on both sides said the outcome would affect the status of unpaid bills of customers of federally regulated telephone companies.


Before the appeal was filed, Glenn Manishin, a lawyer in Washington, D.C., for Collecto Inc., said Montalvo's decision Tuesday was a big win for the defense.

According to court documents, the case began when El Pasoan Nemesio Castro, a former Sprint customer, received two letters last year from the debt-collection company about an unpaid bill for $794.35 for wireless service.

The first letter said Nemesio could save $100 by sending $694.35 right away. A second letter he received later said the debt collector had analyzed his assets.

Nemesio was one of about 40 Texas plaintiffs who sued Collecto Inc., the debt-collection company based in Norwell, Mass., which also does business as the Collection Company of America and as U.S. Asset Management.

The suit alleged that the federal two-year statute of limitations for such debts applied in the case and had expired by the time Nemesio received the letters.

The complaint against Collecto also alleged that the letters amounted to a threat of a lawsuit against Nemesio and the others who received similar correspondence, in violation of the Fair Debt Collection Practices Act.

Lawyers for Collecto Inc. denied that Collecto violated any laws and argued that the debts could be collected because the state's four-year statute of limitations applied.

In an earlier pleading, Montalvo said the two-year statute of limitations should be followed, but Collecto's lawyers filed a motion disagreeing with that decision.

Later, Montalvo sided with the defendants, and dismissed the case after ruling that the Texas four-year statute of limitations should be followed.

El Paso lawyer Scott Vogel meier, who represented the plaintiffs, said he filed the appeal Thursday.

The 5th Circuit Court could take several actions, including returning the case to Montalvo and ruling against the plaintiffs.

Diana Washington Valdez may be reached at dvaldez@elpasotimes.com; 546-6140.

To see more of the El Paso Times, or to subscribe to the newspaper, go to http://www.elpasotimes.com. Copyright (c) 2009, El Paso Times, Texas Distributed by McClatchy-Tribune Information Services. For reprints, email tmsreprints@permissionsgroup.com, call 800-374-7985 or 847-635-6550, send a fax to 847-635-6968, or write to The Permissions Group Inc., 1247 Milwaukee Ave., Suite 303, Glenview, IL 60025, USA.

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