United States District Court, N.D. Illinois, Eastern Division
Janis Fuller, individually and on behalf of a class of persons similarly situated, Plaintiffs,
Frontline Asset Strategies, LLC, LVNV Funding LLC, and Resurgent Capital Services, L.P., Defendants.
MEMORANDUM OPINION AND ORDER
A. Guzmán United States District Judge.
reasons stated below, the motion to stay the individual
claims, dismiss the class claims, and compel arbitration 
Janis Fuller applied for and received a credit card from
Credit One Bank, N.A (“Credit One”). She
ultimately defaulted on the amount owed, and Credit One sold
her account, which was ultimately transferred and assigned to
LVNV Funding, LLC (“LVNV”). Plaintiff alleges
LVNV is a debt collector as defined by the Fair Debt
Collection Practices Act (“FDCPA”). (Compl., Dkt.
# 1, ¶¶ 13-17.) Frontline Asset Strategies, LLC
(“Frontline”) was hired to collect the debt.
(Id. ¶ 25.) On or about November 1, 2016,
Frontline sent Plaintiff a collection letter, which she
alleges threatened legal action against her that could not be
taken, and thus violated various subsections of the FDCPA.
See 15 U.S.C. §§ 1692e, 1692e(5),
1692e(10). She sues Defendants on behalf of herself and a
class of similarly situated individuals. Defendants move to
stay the individual claims, dismiss the class claims, and
recently noted by the Seventh Circuit:
Section 2 of the Federal Arbitration Act “reflect[s]
both a ‘liberal federal policy favoring
arbitration' and the ‘fundamental principle that
arbitration is a matter of contract.'” It requires
federal courts to “place arbitration agreements on an
equal footing with other contracts and enforce them according
to their terms.” We will compel arbitration under the
Federal Arbitration Act “if three elements are present:
(1) an enforceable written agreement to arbitrate, (2) a
dispute within the scope of the arbitration agreement, and
(3) a refusal to arbitrate.”
However, because arbitration agreements are contracts, a
“party ‘cannot be required to submit to
arbitration any dispute which he has not agreed so to
submit.'” Therefore, the general rule is that
non-signatories are not bound to arbitration agreements. We
will enforce an arbitration agreement against a non-signatory
if the party seeking to compel arbitration can show that an
exception to this general rule applies.
A.D. v. Credit One Bank, N.A., No. 17-1486, 2018 WL
1414907, at *3 (7th Cir. Mar. 22, 2018) (internal citations
omitted). It is undisputed that Plaintiff has refused to
arbitrate; thus, the third element has been met.
Agreement to Arbitrate. Defendants assert that the terms
and conditions of the Cardholder Agreement, Disclosure
Statement, and Arbitration Agreement
(“Agreement”) that governs Plaintiff's
account with Credit One, which is now owned by LVNV,
prohibits lawsuits and requires binding arbitration.
Specifically, Defendants note that the Agreement states, in
This Agreement, together with the application you previously
signed and the enclosed Arbitration Agreement, governs the
use of your VISA or Mastercard Account issued by Credit One
Bank, N.A. (The “Account, ” “Card”,
or “Card Account”). The words “you”,
“your” and “Cardholder(s)” refer to
all persons, jointly and severally, authorized to use the
Card Account; and “we, ” “us, ” and
Credit One Bank refer to Credit One Bank, N.A., its
successors or assigns. By requesting and receiving, signing
or using your Card, you agree as follows:
IMPORTANT NOTICE: Please read the
Arbitration Agreement portion of this document for important
information about your and our legal rights ...