Okay, this is a little technical, but it is an important topic for those who regularly deal with purchased debt in Florida. We have a statute (§559.715) which requires the buyer of a debt (the company to whom it is assigned) to notify the debtor of that assignment. Some courts have previously held that this requirement was a ‘condition precedent’ to filing a suit. Here is how it works: if the buyer failed to notify the debtor per §559.715, but sues the debtor on the account anyway, attorneys were arguing that the failure to comply with the statute was an absolute bar to the suit.
A number of courts have recently dealt with this issue and the US District Court for the Middle District of Florida recently held that there is no such condition precedent. (Wright v Dyck-O’Neal, et al, Case No 2:15cv-249-FtM-38MRM). Accordingly, the suit was not barred.
Obviously everyone wants to be in compliance and do it the right way, but in those rare situations where this was not done, the suit can be filed and proceed as normal.
Please feel free to call our firm if you have any questions about this issue. Kudos to Dale Golden’s firm (Golden Scaz Gagain) for this outstanding result.