Akalwadi v. Risk Management Alternatives, Inc.

Decision Date22 September 2004
Docket NumberNo. CIV. RDB-02-3604.,CIV. RDB-02-3604.
Citation336 F.Supp.2d 492
PartiesKiran AKALWADI, Plaintiff, v. RISK MANAGEMENT ALTERNATIVES, INC., Defendant.
CourtU.S. District Court — District of Maryland

Devashis A. Kayal, Dev A. Kayal LLC, Silver Spring, MD, for Plaintiff.

Jeffrey L. Friedman, Friedman and Associates LLP, Reisterstown, MD, for Defendant.

MEMORANDUM OPINION

BENNETT, District Judge.

In the case now pending, Plaintiff Kiran Akalwadi ("Akalwadi" or "Plaintiff") alleges that Defendant Risk Management Alternatives, Inc. ("RMA") violated the Fair Debt Collections Practices Act, 15 U.S.C. § 1692 et seq. ("FDCPA"), the Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. ("FCRA"), and the Maryland Consumer Debt Collection Act, Md.Code Ann., Commercial Law § 14-201 et seq. ("MCDCA") in its efforts to collect a debt arising from an accident involving a vehicle rented by Akalwadi. Specifically, Akalwadi's Amended Complaint sets forth the following ten causes of action: (1) FDCPA — false representations to a consumer credit reporting agency; (2) FDCPA — false representations to Plaintiff as to the existence of a second debt; (3) FDCPA — false representations to Plaintiff as to the balance of the original debt; (4) FDCPA — failure to provide verification of the debt; (5) FCRA — failure to reinvestigate claims of misreporting Plaintiff's debts to a consumer credit reporting agency; (6) FDCPA — abusive debt collection practices; (7) FDCPA — unlawful communication in connection with a debt; (8) FDCPA — use of unfair or unconscionable means to collect debts; (9) MCDCA — disclosing false information which affected Plaintiff's credit reputation; and (10) MCDCA — abusive debt collection practices. Before the Court is RMA's Motion for Summary Judgment on all counts and Akalwadi's Cross-Motion for Summary Judgment on Counts I-IV and Counts VII-IX pursuant to Federal Rule of Civil Procedure 56. The issues have been fully briefed and no hearing is necessary. See Local Rule 105.6 (D.Md.2004). For the reasons that follow, RMA's Motion for Summary Judgment will be GRANTED as to Count III and DENIED as to all other Counts and Akalwadi's Motion for Partial Summary Judgment is DENIED.

BACKGROUND

In October 1999, Akalwadi was involved in an accident with the vehicle he rented for personal purposes from Enterprise Leasing Corp. ("Enterprise"). (Am.Compl.¶ 6.) As a result of the accident, Enterprise sent Akalwadi a letter on December 13, 1999 informing him that he would be responsible for repair costs and for loss of use of the vehicle, in an amount totaling $5,729.15. (Compl. at Ex. A.) Enterprise catalogues accidents to its vehicles by a specific "DX number" and Akalwadi's accident was assigned the number: DX0506837. (Am.Compl.¶ 6.) It is undisputed that Enterprise did not receive timely payment from Akalwadi.

On or about March 13, 2000, Enterprise placed Akalwadi's debt with RMA, an accounts receivable company and debt collection agency, for collection. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. B, Ans. No. 17.) Shortly thereafter, on March 18, 2000, Akalwadi received notice from RMA that Enterprise had placed the account with its company for collection. (Am.Compl.¶ 7.) In the notice, RMA assigned the debt account number 15771451000, referencing Enterprise as the creditor and the Enterprise internal catalogue number DX0506837. (Am.Compl.¶ 7.) The notice stated the amount due on the account was $8,020.81, about $2,000 more than the amount stated in Enterprises' December 13, 1999 letter to Akalwadi. (Compl. at Ex. B.) In fact, the $8,020.81 amount included a $2,291.66 RMA collection fee. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. B, Ans. No. 15.)

After receipt of RMA's March 18, 2000 letter, Akalwadi avers that he contacted Kerry Hagan, an Enterprise representative, and confirmed that the balance reported by RMA was inaccurate and the he would receive a credit for the excess amount. (Am.Compl.¶ 8.) Based on this understanding, Akalwadi entered into an agreement with RMA to pay the remaining balance in $200 monthly installments. (Am.Compl.¶ 9.) However, RMA contends that the amount reported on the account was accurate because it reflected both the damages to the rental vehicle and RMA's collection fees. (Def.'s Mem. Supp. Summ. J. at 1.) Paragraph 4(h) of the Enterprise rental agreement, which Akalwadi signed states: "Renter expressly agrees to pay to Owner on demand ... expenses incurred by Owner [Enterprise] in the collection of monies due Owner per this agreement...." (Pl.'s Mem. Supp. Partial Summ. J. at Ex. Z.) RMA alleges that its agreement with Enterprise permits it to directly collect from the debtor the expenses and fees incurred to collect past-due accounts. (Def.'s Mem. Supp. Summ. J.at 1.) To date, RMA has not produced its contract with Enterprise that authorizes this collection procedure. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. W; Ex X.)

In April 2000, RMA began electronically deducting $200 a month from Akalwadi's checking account as payment toward the amount owed. (Pl.'s Mem. Supp. Partial Summ. J. at ¶ 9.) For a period of approximately two years those deductions were made and applied to the debt. On May 9, 2002, RMA sent a letter to Akalwadi stating that he still owed a balance of $5,070.81. (Compl. at Ex. C.) RMA assigned this second debt a separate account number (67738141030), but referenced the same creditor, Enterprise, and the same Enterprise DX tracking number as in the original March 18, 2000 collection letter. (Am.Compl.¶ 9.) Although it is not clear from the face of the letter, RMA has explained that the $5,070.81 amount is the principal balance due after crediting Akalwadi's payments, totaling $2,779.15, plus the additional $2,291.66 owed RMA for its collection fee. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. B Ans. No. 16). However, RMA's Motion for Summary Judgment states that Akalwadi had paid $2,950 toward his debt by October 2001. (Def.'s Mot. for Summ. J. at 2). In fact, it is unclear from the record how much Akalwadi owes on his Enterprise-related debt.

After receiving this notice on May 9, 2002, Akalwadi avers that he contacted RMA within thirty days and indicated that he did not owe Enterprise on this second collection account. (Pl.'s Opp'n to Def.'s Mot. for Summ. J. at Ex. D.) In addition to disputing the amount stated in the May 9, 2002 letter, Akalwadi reiterated that the debt amount reported by RMA in the initial March 18, 2000 letter was inaccurate. (Pl.'s Opp'n to Def.'s Mot. for Summ. J. at Ex. D.) Akalwadi avers that RMA's agents and representatives refused to reinvestigate the accounts and maintained that Akalwadi was obligated on two separate accounts. (Am.Compl.¶ 12.)

During this time, RMA reported Akalwadi's debt to Equifax, a consumer credit reporting agency. (Def.'s Mem. Supp. Summ. J. at 2.) An October 3, 2000 Equifax report shows that, in October 2000, RMA reported a debt owed to Enterprise in the amount of $5,729 and a balance associated with the debt of $6,821. The account number listed on the Equifax report is 325777142. (Compl. at Ex C.) On July 11, 2002, Akalwadi obtained a copy of his credit history from an online source (ConsumerInfo.com). This report of Akalwadi's credit history lists Equifax reporting two collection accounts with RMA totaling $10,142. (Compl. at Ex. C.) Both collection accounts are listed for the same amount, $5,071. (Compl. at Ex. C.) The first collection account indicates that it was opened in March 2000 and lists an account number 325777142. (Compl. at Ex. C.) The second collection account indicates that it was opened in April 2002 and lists the same account number that appeared in the May 9, 2002 RMA letter to Akalwadi (67738141030) (Compl. at Ex. C.) This erroneous "double reporting" is undisputed and resulted from two different RMA offices reporting the same debt to Equifax. (Def.'s Mot. for Summ. J. at 2).

Akalwadi twice challenged the accuracy of these two reported debts with Equifax, first on August 30, 2002, and second on September 18, 2002. (Pl.'s Mem. Supp Partial Summ. J. at Ex. L.) Equifax verified the information with RMA. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. O; Ex. S at 4.) RMA represented that it reinvestigated the debts and that the debt information was accurate. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. O; Ex. S at 4.) On September 23, 2002, Equifax notified Akalwadi that RMA determined that both accounts and their balances were being reported accurately. (Compl. at Ex. F; Pl.'s Mem. Supp. Partial Summ. J. at Ex. G.)

On November 4, 2002, Akalwadi filed the Complaint in this case. In December 2002, RMA contacted the credit reporting agencies and removed all references to Akalwadi's debt. (Pl.'s Mem. Supp. Partial Summ. J. at Ex. T; Ex. U; Ex. V.) On June 25, 2003, Akalwadi filed an Amended Complaint. At the conclusion of all discovery, RMA filed a motion for summary judgment on all counts pursuant to Rule 56. Akalwadi also filed a motion for summary judgment as to Counts I-IV and Counts VII-IX.

STANDARD OF REVIEW

Rule 56 of the Federal Rules of Civil Procedure provides that summary judgment "shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." Fed.R.Civ.P. 56(c) (emphasis added). In Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986), the Supreme Court explained that only "facts that might affect the outcome of the suit under the governing law" are material. Anderson, 477 U.S. at 248, 106 S.Ct. 2505. Moreover, a dispute over a material fact is genuine "if the evidence is such that a reasonable jury could return a verdict for the nonmoving party." Id. The Court further...

To continue reading

Request your trial
172 cases
  • Long v. Pendrick Capital Partners II, LLC, Case No.: GJH-17-1955
    • United States
    • U.S. District Court — District of Maryland
    • March 18, 2019
    ...Act "is a strict liability statute and a consumer only has to prove one violation to trigger liability." Akalwadi v. Risk Mgmt. Alts., Inc. , 336 F.Supp.2d 492, 500 (D. Md. 2004). To succeed on a FDCPA claim, a plaintiff must demonstrate that "(1) the plaintiff has been the object of collec......
  • Brown v. Buchan
    • United States
    • U.S. District Court — Western District of Tennessee
    • November 2, 2010
    ...collection calls per day stated a plausible claim under § 1692d and denying defendant's motion to dismiss); Akalwadi v. Risk Mgmt. Alts., Inc., 336 F.Supp.2d 492, 505–06 (D.Md.2004) (finding that, where the plaintiff alleged that the defendant called the plaintiff twenty-eight times during ......
  • Robinson v. Tsys Total Debt Management, Inc.
    • United States
    • U.S. District Court — District of Maryland
    • August 25, 2006
    ...("FDCPA") "safeguards consumers from abusive and deceptive debt collection practices by debt collectors." Akalwadi v. Risk Mgmt. Alternatives, Inc., 336 F.Supp.2d 492, 500 (D.Md.2004) (citations omitted). The FDCPA covers debt collectors who "regularly collect or attempt to collect, directl......
  • Obenauf v. Frontier Financial Group Inc.
    • United States
    • U.S. District Court — District of New Mexico
    • May 19, 2011
    ...issue have found that “it turns not only on the volume of calls made, but also on the pattern of calls.” Akalwadi v. Risk Management Alternatives, Inc., 336 F.Supp.2d 492 (D.Md.2004); see also Gilroy v. Ameriquest Mortg. Co., 632 F.Supp.2d 132, 136–37 (D.N.H.2009) (finding a violation of § ......
  • Request a trial to view additional results

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT