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Kielty v. Midland Credit Management, Inc.

United States District Court, S.D. California

January 28, 2015

PATRICIA KIELTY AND SUSAN PATHMAN, on behalf of themselves and all others similarly situated, Plaintiffs,
v.
MIDLAND CREDIT MANAGEMENT, INC., Defendant.

ORDER GRANTING DEFENDANT'S MOTION TO DISMISS (ECF No. 11)

CYNTHIA BASHANT, District Judge.

Plaintiffs Patricia Kielty and Susan Pathman (collectively "Plaintiffs") commenced this putative class action on March 10, 2014 by filing a complaint alleging Defendant Midland Credit Management, Inc. ("Midland") violated the Credit Repair Organizations Act ("CROA"), 15 U.S.C. §§ 1679-1679j; Fair Debt Collection Practices Act ("FDCPA"), 15 U.S.C. §§ 1692-1692p; and California's Rosenthal Fair Debt Collection Practices Act ("Rosenthal Act"), Cal. Civ. Code §§ 1788-1788.3. Midland now moves to dismiss the Complaint in its entirety pursuant to Federal Rule of Procedure 12(b)(6).

The Court finds this motion suitable for determination on the papers submitted and without oral argument. See Civ. L.R. 7.1(d)(1). For the reasons set forth below, this Court GRANTS Midland's motion to dismiss.

I. BACKGROUND

Plaintiffs are California residents who claim they each received letters and brochures from Midland between April 13, 2012 and January 22, 2014. (ECF No. 1 ("Compl."), at ¶¶ 4-5, 12-19.) According to Plaintiffs, the letters and brochures contained statements representing that Midland could perform credit repair services for them. These statements included the following:

Your past due balance... with FIRST CREDIT BANK OF DELAWARE is being reported to the credit reporting bureaus and remains a negative item on your credit report.... We can help you get back on track.... Once you make a payment, interest will stop being applied to your account[, ] [y]our credit report will be updated with the payments you make[, ] [and] [t]he account will appear on your credit report as Paid in Full after you've completed your payments[.]

( Id. at ¶ 12 (quoting an April 13, 2012 letter to Kielty).)

Special offers are now available to help you resolve your unpaid Cit Bank account... [w]e can help you get back on track.... [W]e will not sue you for repayment of this obligation. This account may still be reported on your credit report as unpaid, and repaying the obligation may help toward improving your credit.

( Id. at ¶ 17 (quoting a February 13, 2013 letter to Pathman).)[1]

Call 800-282-2644 and find out how we can help you.

( Id. at ¶ 13 (quoting Why Paying Your Bills Is So Important to Your Credit Report brochure ["Brochure"] sent to Kielty and Pathman).)[2]

[O]nce you've completed your agreed-upon payments to settle this account, your credit report will be updated as "Paid in Full"!

( Id. at ¶ 15 (quoting March 28, 2013 and July 12, 2013 letters to Kielty).[3])

Ms. Kielty also alleges Midland sent her a letter on January 22, 2014, thanking her for a previous payment on her account and stating the following:

Your [payment] has proven you are interested in resolving this debt.... [W]e would like to offer you the opportunity to resolve your account. To re-establish a positive payment history ...

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