Woman Files Lawsuit Against Debt Collector Over Posting on MySpace

When Paula Newland fell behind on her payments in early January on her 2005 Chevy Impala, the last thing she wanted to do was share that information on her MySpace profile.

In what appears to be the first lawsuit related to debt collection activities on a social network, the Michigan resident is suing two debt collection agencies and their principals for violating the Fair Debt Collection Practices Act (FDCPA) for, among other things, posting information about her indebtedness on her MySpace page. The lawsuit, filed on March 23, 2009, seeks damages in excess of $25,000 together with equitable and declaratory relief.

According to her complaint, Newland fell behind on her payments on a 2005 Chevy Impala in January 2009. Shortly thereafter, she alleges that the defendants began engaging in various harassing and abusive collection activities, including disclosing private information to her family, friends, and neighbors, publishing private information on her MySpace page, and threatening to "camp out" in front of her home "all weekend." The complaint doesn't describe what the defendants allegedly posted on her MySpace page.

The six count complaint alleges violations of the Michigan Collection Practices Act, federal Fair Debt Collection Practices Act, and Michigan Consumer Protection Act, as well as claims for Intentional Infliction of Emotional Distress, Intrusion Upon Seclusion, and Disclosure of Embarrassing Private Facts.


According to the FDCPA, Subsection 805: Communication with a Debt Collector, Every communication with the debtor must include the phrase, “This is an attempt to collect a debt, and any information obtained with be used for that purpose. This warning is referred to as the mini Miranda. This warning must be done on every contact with a debtor, or any other person that the debtor talks to about the debt.

Communications with Third Parties: The FDCPA recognizes that an individual’s financial obligations are their private business. As a result, all contact with third parties is strictly regulated:

A third party is anyone not legally responsible for the bill. This includes answering machines.

Unless the debtor has given direct VERBAL authorization to the collector, no third party may be informed of the nature of the collector’s call, including the amount of the debt, name of the creditor, or any other information pertaining to the nature of the debt. This includes communication with Credit Counseling Services, as well as Mortgage and Lending Institutions. (Exceptions without permission: spouse, Power of Attorney (POA), Attorney, Executor of Estate)