The defense requires that the violation was unintentional, resulted from a bona fide error, and occurred despite procedures reasonably adapted to avoid the error. Jerman held it does not cover mistakes of law.
Documented procedures are required.
Alternative Names:
Bona Fide Error|FDCPA Error Defense
Why it Matters?
Jerman's exclusion of legal errors substantially narrowed the defense, since a collector's mistaken interpretation of the statute does not qualify regardless of good faith, leaving the defense available principally for clerical and processing errors. Documented procedures reasonably adapted to prevent the specific error are required, and general quality control programs without a procedure addressing the error at issue do not satisfy the element.
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Related terms
Frequently asked questions
What did Jerman exclude?
What procedures satisfy the element?
