Key Points: DISTRICT COURT IN GEORGIA DISMISSES MORTGAGOR’S DEBT COLLECTION CLAIMS

1. Georgia’s Middle District dismissed multiple claims filed by mortgagor, Lequita Whitfield, against servicer, Selene Finance LP (“Selene”) for alleged “unlawful and unfair debt collection practices.” Whitfield v. Selene Fin. LP, No. 5:24-CV-00153-TES, 2024 WL 4933329, at *1-2 (M.D. Ga. Dec. 2, 2024). Whitfield claimed that a “GA Final Letter” sent by Selene after Whitfield defaulted on her mortgage violated The Fair Debt Collections Practices Act (“FDCPA”) and Georgia’s Fair Business Practices Act (“GFBPA”).
2. The Middle District rejected all of Whitfield’s claims. Firstly, the Court noted that the Final Letter repeatedly indicated that Selene would “comply with all applicable laws in accelerating and foreclosing.” Therefore, Whitfield’s alleged emotional distress stemming from her fear of the eminent sale of her property was unwarranted. Secondly, the Court found that Whitfield’s GFBPA claims also failed because the legislature restricted application of GFBPA “to the unregulated consumer marketplace.”[i] Since loan lending and servicing were already “heavily regulated areas,” GFBPA did not apply.
3. Lastly, the Court explained that even if it ignored the lack of substantive merit in Whitfield’s claims, it was still required to dismiss because of a procedural defect in Whitfield’s case.[ii] Namely, Whitfield failed to comply with the “notice-and-cure” provision in the Security Deed because she never provided Selene notice of the alleged breach and an opportunity to cure it prior to filing suit.

[i] Whitfield, at *7.

[ii] Whitfield, at *8-9. Future references to this case are to this citation.

Click here to read the full article