Counterclaims of Debt Collection Agency Are ‘Barred,’ Says Verizon

Verizon denies that its debt collection agency, CBE Customer Solutions, is entitled to any relief and asks the court to enter judgment in its favor, said Verizon’s answer Friday (docket 1:22-cv-08703) to CBE’s counterclaims (see 2211210034) in U.S. District Court for Southern New York. Verizon sued CBE to recover $6.1 million in damages and court costs associated with the Telephone Consumer Protection Act class-action settlement under an April 2014 master services agreement (MSA) stipulating that CBE indemnify Verizon for fees and costs that the carrier incurs "in defending any claims arising out of CBE's services" (see 2210140026). CBE countersued for unjust enrichment and breach of the implied covenant of good faith, alleging any negligence that mushroomed into a TCPA class action and settlement was of Verizon’s doing, not CBE’s. CBE’s counterclaims “are barred because Verizon has fulfilled all of its obligations under the MSA,” said the carrier. Verizon said its TCPA problems began after a CBE employee “negligently failed” to remove consumer Robin Breda from one of Verizon’s call lists. Breda began getting inundated with debt-collection calls from Verizon’s automated “voice response” system, even though she wasn't a Verizon customer. CBE countered that it had no control over “who, how or when Verizon’s automated system” calls individuals, and that Verizon, “at all times, controlled both the technology and methodology” for initiating the calls.