Hard Luck Story for Tenant and Realtor

According to a Federal court judge in Camden County, a Realtor may be sued under the Fair Debt Collection Practices Act for helping a landlord client collect overdue rent. In a recent decision, the plaintiff, an officer in the US Army, signed a rental lease for a $2,700 per month. The Realtor who represented the landlord arranged the lease for plaintiff in August 2012. In August 2013, the plaintiff was ten days late with her rent payment. The Realtor sent the plaintiff harassing and belligerent emails, the plaintiff’s suit alleges.

The Realtor then left “a very nasty message” with the commander of the plaintiff’s brigade, advising him that he needed to “handle” his officer, the suit claims. Based on the Realtor’s claim, the commander became concerned about the plaintiff’s ability to manage her money and revoked her mobilization order and pay rate. Despite the fact that the plaintiff advised the commander that she had made arrangements to pay the rent, the plaintiff lost her $84,000 a year job and she has been unemployed since her mobilization was revoked.

The court papers reveal that the Realtor contacted the plaintiff’s superior officers on numerous occasions after being asked verbally and in writing to stop. The plaintiff contended that the Realtor’s action violated the Fair Debt Collection Practices Act. The Realtor contended that she was not subject to the requirements of the FDCPA, because she was not in the regular business of collecting debts. However as part of her email correspondence with the plaintiff, the Realtor advised that she would help the landlord in any way possible, regardless of the plaintiff’s wishes.

In denying the motion to dismiss, the judge stated that the Realtor clearly knew how to collect this debt and that she had prior experience in collecting the overdue rent for her landlord clients. The court specifically relied on her statement that she continued to serve her landlord clients even after the lease is signed for proof of ongoing debt collection work.

The matter will now move to discovery and possibly to trial. I will continue to monitor this case and report any further court decisions. More information on this matter may be found in the New Jersey Law Journal.

Mary Ann Kenny Pidgeon
mpidgeon@pidgeonlaw.com
609-520-1010