North Carolina Putative Class Complaint Survies Motion to Dismiss

• By: ALFN
• On: 09/17/2025 16:50:03
• In: Legal Update

Click here to review a copy of decision rendered yesterday in England v. Selene Finance, LP, 2025 WL 2653091 (M.D. N.C. 2025).  On October 4, 2023, Plaintiffs filed a putative class action against Defendant, alleging that Defendant's form notice of default violated the Fair Debt Collection Practices Act (“FDCPA”), the North Carolina Debt Collection Act (“NCDCA”), and the North Carolina Collection Agencies Act (“NCCAA”).  Plaintiffs also included a count for negligent misrepresentation under North Carolina common law.   Defendant filed a Moton to Dismiss, which the district court granted, in part, and denied, in part.  The district court concluded that “the well-pleaded allegations of the complaint plausibly state a claim for relief under §1692e” of the FDCPA.  Id. at 3.

Plaintiffs allege that Selene “in the usual course of business” does not accelerate the loans of borrowers who fail to pay their total default amount before the date set out in the letters. . . . Rather, Plaintiffs allege, to avoid acceleration borrowers need only pay an amount sufficient to bring their loans less than 120 days past due. . . . Thus, Plaintiffs have alleged a plausible claim that Selene's letters violate § 1692e(5) by threatening actions — acceleration, foreclosure, and sale — that it has no intention of taking, and to violate §1692e(10) by deceptively representing these actions as possible consequences if the borrower fails to completely cure the default by the date specified.

Id.  The district court granted Defendant's Motion to Dismiss Plaintiffs' negligent misrepresentation claim but denied its motion relating to the NCDCA and NCCAA claims.