Galvez v. Midland Credit Mgmt.: Legal Fees from Collection Defense Establish FDCPA Standing - acainternational.org
Legal fees incurred during a defense against debt collection actions can now establish standing under the FDCPA, impacting how collection agencies approach litigation.
Aforeworn detected this change in the Debt Collection (FDCPA / State) space on September 2, 2026 and published this briefing so affected operators are forewarned rather than caught off guard. It is rated Medium urgency. Collection agencies and debt buyers involved in litigation. should confirm how it applies to their specific situation before acting. There is a time constraint attached: N/A. Acting after that point can mean penalties, a lapsed licence, or lost eligibility — exactly the kind of surprise Aforeworn exists to prevent. Aforeworn monitors Debt Collection (FDCPA / State) continuously and turns every detected change into a plain-English briefing like this one, so you always know first. Forewarned is forearmed.
What changed
Legal fees from collection defense can now be used to establish standing under the FDCPA, potentially increasing litigation costs.
Who it affects
Collection agencies and debt buyers involved in litigation.
What you must do
Review and adjust litigation strategies to account for the implications of this ruling on standing and costs.
Deadline
N/A
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