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THE CARLAWYER ©

Hyundai hired Constar Financial Services, The federal trial court denied Constar’s Guevara v. Constar Financial Services, LLC,
LLC, a debt collector, to collect Guevara’s motion. The court first found that the 2018 U.S. Dist. LEXIS 99729 (M.D. Pa. June
debt. Hyundai told Constar that Guevara pleadings failed to show whether Hyundai 14, 2018)
owed the entire deficiency, without would have shown the anticipated refund
accounting for the anticipated refund amounts in the information it provided to So, there’s this month’s roundup! Stay legal,
amounts, and Constar sent Guevara a letter Constar. Absent this information, the court and we’ll see you next month. n
seeking to collect the entire deficiency. could not determine what amount Guevara
owed at the time Constar sent the letter. Tom (thudson@hudco.com) is Of Counsel
After Constar sent the letter, Hyundai and Nikki (nmunro@hudco.com) is a
received the refunds it was expecting. Next, the court considered whether Constar Partner in the law firm of Hudson Cook,
Constar never tried to correct the was entitled to rely on information from LLP. Tom has written several books and is
information it had already sent to Guevara. Hyundai. The court reasoned that because the publisher of Spot Delivery®, a monthly
Guevara sued Constar, alleging that it the FDCPA is a strict liability statute, a legal newsletter for auto dealers. He is the
violated the Fair Debt Collection Practices debt collector is liable for its unintentional CEO of CounselorLibrary.com, LLC and
Act by including the anticipated refund violations of the FDCPA, unless it can the Senior Editor of CounselorLibrary.
amounts in the balance it said he owed. establish the bona fide error defense. In com’s CARLAW®, a monthly report of legal
this situation, the court explained, Constar developments for the auto finance and
Constar moved for judgment on the could take advantage of the bona fide leasing industry. Nikki is Editor in Chief of
pleadings on the grounds that the debt was error defense if it showed that its reliance CARLAW®, a contributing author to the F&I
correct at the time it stated the amount on the information from Hyundai was Legal Desk Book and frequently writes for
because Hyundai had not yet received reasonable. But, the court emphasized, the Spot Delivery®. For information, visit www.
the anticipated refund amounts. In the debt collector bears the burden of showing counselorlibrary.com. © CounselorLibrary.
alternative, Constar claimed that it was it is entitled to the bona fide error defense. com 2018, all rights reserved. Single
entitled to rely on the information that Because Constar had not made such a publication rights only, to the Association.
Hyundai provided. showing, it was not entitled to judgment on (8/18). HC 4848-3995-1983.1
the pleadings.

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