# Question 42: The Collector's Ledger

## Your role

You represent Ellis Mora, who has been sued by Ledger Crown LLC on a consumer account in the fictional State of Bellan. The collection record contains multiple statutory violations. Compute the counterclaim and advise how it affects the debt action.

## Governing law

Assume the following Bellan rules apply:

1. A debt buyer must prove ownership through a chain of assignments that identifies the defendant's account. A generic portfolio bill of sale that does not identify the account is insufficient by itself.

2. Within five days after an initial collection communication, a collector must give written notice stating the amount, current creditor, original creditor, and a working address for a 30-day dispute. Failure carries $1,000 statutory damages per collection matter.

3. If the consumer disputes in writing within 30 days, collection must cease until the collector mails verification and the current creditor's identity. Each collection act during the prohibited period carries $750, capped at $3,000.

4. A collector may not state an amount that includes a charge unauthorized by contract or law, or threaten legal action it cannot lawfully take. Each communication containing one or more such false representations carries $1,500, capped at $4,500. Multiple false statements in the same communication count once under this rule.

5. After receiving a written request to cease calls, each later call carries $500, capped at $2,000.

6. Disclosing the debt to an employer, relative, or other third party without permission carries $2,000 per disclosure. A message that identifies the collector and states that the call concerns the consumer's debt is a disclosure.

7. Damages under rules 2 through 6 are cumulative because they protect distinct interests, even when one act violates more than one rule.

8. Proven actual loss, including lost wages caused by an unlawful employer disclosure, is recoverable in addition to statutory damages. Attorney fees are awarded to a prevailing consumer.

9. A statutory counterclaim may be set off against a proven debt. It does not establish that the debt is owned or correctly calculated.

## Facts

Ledger Crown's complaint seeks $3,680. The last account statement from the original creditor shows $3,200. No contract or supplied law authorizes the additional $480.

Ledger Crown's first letter, dated January 2, demanded $3,680. It named Ledger Crown as current creditor but omitted the original creditor and provided no address for disputes. The letter stated, "Failure to pay may result in immediate suit."

Ellis mailed and emailed a written dispute and cease-call request on January 12. Delivery was confirmed January 13. Ledger Crown did not mail verification until February 20.

Between January 13 and February 20, Ledger Crown:

* Called Ellis on January 15.
* Called Ellis on January 22.
* Sent a second letter on January 25 demanding $3,680.
* Called Ellis on February 3.
* Filed the present complaint on February 10 seeking $3,680.

For rule 3, each call, letter, and lawsuit is a separate collection act. There were five acts, but the statutory cap applies.

The January 2 letter, January 25 letter, and February 10 complaint each state the unauthorized $3,680 amount. No other communication contains a false amount or unlawful threat.

On January 18, a collector left a voicemail with Ellis's payroll supervisor stating, "This is Ledger Crown calling about Ellis Mora's unpaid account and possible lawsuit." On January 29, a collector told Ellis's sister that Ellis "owes us thousands and will be sued." These are two third-party disclosures.

The payroll supervisor removed Ellis from a cash-handling shift after the voicemail. Ellis lost $1,200 in documented wages. No other actual damages are supplied.

Ledger Crown attaches a bill of sale transferring "a portfolio of charged-off accounts" but no schedule, account number, or affidavit linking Ellis's account to the portfolio.

## Assignment

Analyze:

* Ledger Crown's proof of ownership and the defense to the complaint.
* The validation-notice violation.
* The number and value of post-dispute collection acts, applying the cap.
* The number and value of false-amount communications, applying the cap.
* The number and value of post-cease calls.
* The two third-party disclosures.
* Actual lost-wage damages.
* The exact total counterclaim before attorney fees.
* Setoff and litigation posture, including whether Ellis should pay, settle, move for judgment, or demand dismissal and affirmative recovery.

---

---