Costs in debt collection lawsuits
Marx v. General Revenue
In brief
The FDCPA’s bad-faith-and-harassment provision does not prevent district judges from awarding costs under the ordinary federal rule.
- Where it stands
- Decided
Decided 7-2 · February 26, 2013 · Opinion by Justice Thomas
- What it’s about
- Olivea Marx challenged a district court’s award of costs to debt collector General Revenue Corporation, arguing the Fair Debt Collection Practices Act allowed costs against her only if she filed her claim in bad faith to harass.
- Who it affects
- District courts retain discretion to award costs to a winning defendant in a Fair Debt Collection Practices Act case under the usual federal rule.
Summary: written with AI from the case record.
What it's about
The Supreme Court agreed with the appeals court that the Act did not displace the usual rule allowing costs for the winning side, and affirmed the appeals court’s decision.
The dispute was whether the FDCPA’s rule about costs in cases brought in bad faith to harass replaces the general federal rule on costs.
Question presented
Did the Fair Debt Collection Practices Act prevent the district court from awarding costs to the General Revenue Corporation unless Marx filed her claim in bad faith and for the purpose of harassment?
What the Court decided
Holding
Section §1692k(a)(3) is not contrary to, and, thus, does not displace a district court’s discretion to award costs under, Rule 54(d)(1). 668 F. 3d 1174, affirmed.
- Result
- Affirmed
The Court's reasoning
The Court said the FDCPA’s costs provision does not override Federal Rule of Civil Procedure 54(d)(1), which leaves district courts discretion to award costs.
The vote
From the opinions
“That is apparent from the statute’s plain language, which limits a court’s discretion to award costs to prevailing defendants to cases “brought in bad faith and for the purpose of harassment.””
What's next
The Tenth Circuit’s decision remains in place. District courts retain discretion to apply the usual costs rule in FDCPA cases.
Documents
Opinions
Audio
Docket activity
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Audio Recording added: Oral Arguments - Marx
Opinion added: Marx
Sources
Primary materials plus reporting. Best-effort analysis: this explainer relies on a mix of primary materials and trusted secondary sources. Official filings and opinions remain authoritative.