Opinion ID: 779475
Heading Depth: 3
Heading Rank: 2

Heading: Call GM Card at (800) 557-5620 ext. 3740 to discuss payment arrangements.

Text: 14 Very truly yours, David D. Dickerson & Associates By: [Facsimile signature] David D. Dickerson, Esq. 15 R. 11 Ex. A (emphasis in original). A payment coupon addressed to GM Card was attached at the bottom of the letter. 16 As the text of Dickerson's letter reveals, debtors were advised either to make payment directly to GM Card (Household's trade name) or, if they wished to discuss payment arrangements, to call GM Card directly at the indicated 800 number. Calls placed to that number were taken by Household's in-house collection personnel, who were instructed to handle the calls themselves and not to refer inquiries to Dickerson. Dickerson's letterhead naturally included his firm's telephone number, however, and the letter did instruct cardholders to notify us — presumably meaning Dickerson—in writing if they disputed part or all of the debt. As a result, Dickerson's firm regularly did receive written and telephonic inquires and responses from cardholders and their attorneys. However, he was not empowered to resolve matters on Household's behalf and did not do so. Where a written response was received, a firm employee would generate one of six form transmittal letters to Household highlighting the nature of the response (e.g., the debtor's declaration of bankruptcy, her inability to pay the debt, her dispute of the debt, and so on). 1 Dickerson himself reviewed and signed each transmittal letter, which was then sent to Household with the debtor's response enclosed. 2 A copy of the transmittal letter, which indicated that the debtor was to deal with Household directly, was sent to the debtor as well. Telephone calls to Dickerson's office were handled in a similar manner. Such calls were routed to Dickerson himself or, if he was unavailable, to his voice mail. In either instance, debtors were advised to submit a written response. As with the written responses, Dickerson forwarded the telephonic responses to Household for disposition (often by way of a phone call from Dickerson to a Household employee). 3 Dickerson took no further action once the responses were handed over to Household. Household never asked Dickerson to pursue a judgment on its behalf, although Dickerson routinely did so for other clients. Household, not Dickerson, handled any requests for verification of the debt. 17 Thirty days after Household referred a delinquent account to Dickerson, the firm returned the account to Household. 4 Household paid Dickerson a flat fee of $2.45 per account irrespective of the effect (if any) that his letter had upon the debtor. Dickerson in turn paid Contact U.S.A. ninety-nine cents per letter for its services. Dickerson received approximately 2,000 accounts per month from Household. Dickerson typically spent two to three hours per day working on Household matters, and he performed the bulk of the work done by his firm on such matters. 18 On or about January 7, 1998, Dickerson sent Nielsen (a Chicago resident) a delinquency letter concerning her GM Card account. As of that date, the balance on her account was more than 120 days past due, and she had not responded to Household's previous attempts to resolve the delinquency. When Nielsen received and read Dickerson's letter, she noted that he was a lawyer and assumed that she might be sued on her unpaid debt. Nielsen did not, however, respond to the letter. Four months after she received it, she declared bankruptcy. The bankruptcy court discharged her debts on August 28, 1998.