Sued by Scalley Reading Bates in Utah? Here Is What to Do

Scalley Reading Bates Hansen & Rasmussen, P.C. is a Salt Lake City, Utah law firm founded in 1971 that represents institutional lenders, credit unions, and mortgage servicers across the Intermountain West. The firm’s primary revenue lines are non-judicial foreclosure trustee services, creditor representation in bankruptcy proceedings, and debt collection litigation.

Its clients include national banks such as JPMorgan Chase, Fannie Mae, Freddie Mac, and Mountain America Federal Credit Union. This page covers who the firm represents, what legal processes it uses against consumers, your rights under federal law, and the defenses available to you if the firm is pursuing a foreclosure, collection lawsuit, or bankruptcy stay motion against you in Utah.

Who Is Scalley Reading Bates Hansen & Rasmussen, P.C.?

Scalley Reading Bates Hansen & Rasmussen, P.C. is a Utah professional corporation headquartered at 15 West South Temple, Suite 600, Salt Lake City, UT 84101, operating since November 26, 1971. The firm’s principal contact for default services is Marlon L. Bates, who has personally handled over 18,000 non-judicial foreclosures in Utah and holds Fannie Mae and Freddie Mac approved-counsel status.

The firm’s bankruptcy creditor practice is led by Darwin H. Bingham, a former chairman of the Bankruptcy Section of the Utah State Bar. Because Scalley Reading regularly files collection lawsuits and seeks judgments to recover consumer debts on behalf of third-party institutional clients, it qualifies as a “debt collector” under 15 U.S.C. § 1692a(6) in those collection contexts, and the Supreme Court confirmed in Heintz v. Jenkins, 514 U.S. 291 (1995), that the FDCPA applies to attorneys who litigate to collect consumer debts.

Your Legal Rights When Scalley Reading Bates Pursues You

The FDCPA grants you four enforceable rights when Scalley Reading Bates contacts you in a consumer debt collection context, and violations entitle you to statutory damages up to $1,000, actual damages, and attorney’s fees under 15 U.S.C. § 1692k. Separately, the Truth in Lending Act and the Real Estate Settlement Procedures Act provide distinct rights in mortgage and foreclosure contexts.

Right to Debt Validation: 15 U.S.C. § 1692g

Within 30 days of receiving the firm’s first written collection notice, you may send a written request demanding verification of the debt and the name of the original creditor. Scalley Reading must cease all collection activity until it provides written verification. For accounts serviced on behalf of a large institutional client, the firm must identify which entity currently holds the debt and produce documentation supporting the claimed balance.

Right Against False or Misleading Representations: 15 U.S.C. § 1692e

Scalley Reading may not misrepresent the character, amount, or legal status of a debt, threaten legal action it does not intend to take, or add fees or interest not authorized by the underlying loan documents or permitted by Utah law. Overstating a deficiency balance or including unauthorized collection charges in a demand letter violates 15 U.S.C. § 1692e(2)(A) and is actionable by the consumer.

Right Against Harassment and Oppressive Conduct: 15 U.S.C. § 1692d

Scalley Reading may not engage in conduct whose natural consequence is to harass, oppress, or abuse. Using the litigation or foreclosure process solely as a pressure mechanism rather than to pursue a legitimate legal claim violates 15 U.S.C. § 1692d.

Right to TILA Rescission in Mortgage Disputes: 15 U.S.C. § 1635

If Scalley Reading is pursuing a mortgage enforcement action and your lender violated the Truth in Lending Act at loan origination, you may have the right to rescind the mortgage under 15 U.S.C. § 1635. The Tenth Circuit held in Sanders v. Mountain America Federal Credit Union (10th Cir. 2012), a case in which Scalley Reading’s Joseph A. Skinner served as defense counsel, that borrowers invoking TILA rescission are not required to plead their ability to repay as a condition of asserting the right. This ruling reduces a barrier lenders previously attempted to impose on consumers seeking rescission.

Federal Court Cases Involving Scalley Reading Bates

Three verified federal court records document Scalley Reading Bates appearing in consumer-related proceedings. All are matters of public record.

Sanders v. Mountain America Federal Credit Union (10th Cir. 2012). Scott and Lisa Sanders sued Mountain America Federal Credit Union for TILA and ECOA violations arising from a mortgage loan. Scalley Reading’s Joseph A. Skinner served as defense counsel for the credit union. The Tenth Circuit reversed the district court’s dismissal of the TILA and ECOA claims, holding that borrowers are not required to plead their ability to repay to invoke TILA rescission under 15 U.S.C. § 1635, and that the district court erred in dismissing the ECOA claim on incomplete-application assumptions. The ruling set a consumer-favorable precedent in the Tenth Circuit. Source: CaseMine commentary, Sanders v. Mountain America FCU.

In re Martin, Bankruptcy Case No. 13-20069 (Bankr. D. Utah, Mar. 26, 2013). Scalley Reading’s Darwin H. Bingham represented Mountain America Federal Credit Union in a Chapter 13 bankruptcy proceeding. The court granted the credit union relief from the automatic stay to exercise legal and contractual remedies against a secured vehicle (a 2003 BMW) and against the co-debtor, after no party filed a timely written objection to the motion. Source: CaseMine, In re Martin, Bankr. D. Utah 2013.

Yocum v. Rental Solutions & Scalley Reading Bates (D. Utah, 2026). A consumer filed a federal FDCPA action against Scalley Reading Bates in the District of Utah, alleging that standard lease wear-and-tear fees assigned to collections may not be legally enforceable under FDCPA notice requirements. The case was noted by ACA International’s daily decision archive as pending in 2026. Because the case was active as of the research date, no outcome is attributed. Source: ACA International Daily Decision Archive (access-restricted).

To file a complaint against Scalley Reading Bates, use the CFPB complaint portal, the FTC at reportfraud.ftc.gov, or the Utah Attorney General’s consumer complaint portal.

If Scalley Reading Bates Is Pursuing a Lawsuit or Foreclosure Against You

Scalley Reading Bates pursues three primary enforcement tracks against consumers: non-judicial foreclosure trustee sales, collection lawsuits to obtain money judgments, and motions for relief from the automatic stay in bankruptcy proceedings. Each carries a different deadline and a different set of defenses.

Non-Judicial Foreclosure. Utah is a non-judicial foreclosure state. Scalley Reading, acting as trustee for a lender, can schedule and conduct a trustee sale without first filing a court case. Under Utah Code § 57-1-24, the trustee must provide at least three months notice before a sale can occur. You have the right to reinstate the loan by paying all overdue amounts before the sale date. Once a trustee sale is completed, your right of redemption under Utah law is limited. If you have received a Notice of Default, contact an attorney immediately rather than waiting for the sale date.

Collection Lawsuit. If Scalley Reading has filed a civil collection lawsuit against you, you have 21 days from service to file a written Answer under Utah Rules of Civil Procedure Rule 7. Missing this deadline results in a default judgment that authorizes wage garnishment and bank levies under Utah Code § 78B-5-820. Raise any statute of limitations defense in your Answer: Utah’s limitation period on written contracts is six years under Utah Code § 78B-2-309, and on open accounts is four years under Utah Code § 78B-2-307.

Bankruptcy Stay Motion. If you have filed for bankruptcy and Scalley Reading has filed a motion for relief from the automatic stay on behalf of a secured creditor, you typically have 14 days to file a written objection under Federal Rule of Bankruptcy Procedure 4001. Failing to object results in the court granting the motion without a hearing, allowing the creditor to proceed with foreclosure or repossession despite your bankruptcy filing. Call 877-700-5790 or visit our free case review page before any of these deadlines pass.

Resolution Options When Scalley Reading Bates Is Pursuing You

Resolution options depend on which enforcement track Scalley Reading is using and which institutional client it represents.

Loan reinstatement. In a foreclosure, you may reinstate the loan by paying all past-due amounts, late fees, and documented foreclosure costs before the trustee sale date under Utah Code § 57-1-31. Scalley Reading must provide a reinstatement figure in writing upon request. Obtain the figure and confirm the deadline in writing before making any payment.

Loan modification or forbearance. If the underlying lender is a federally regulated institution such as JPMorgan Chase or a Fannie Mae or Freddie Mac servicer, you may have access to loss mitigation options including loan modifications and forbearance agreements that must be reviewed before a trustee sale can proceed under CFPB mortgage servicing rules, 12 C.F.R. § 1024.41. Scalley Reading, as trustee, cannot complete a sale while a complete loss mitigation application is pending with the servicer.

Settlement of a collection judgment. On collection lawsuits, Scalley Reading’s institutional clients accept lump-sum settlements or structured payment plans in some cases. Any settlement must be confirmed in a signed written agreement specifying the amount, reporting treatment, and a dismissal or satisfaction of judgment before payment is made.

Note on credit reporting after resolution. A foreclosure, judgment, or settled collection balance each carries distinct credit consequences. A trustee sale results in a foreclosure entry on your credit report that remains for seven years. A judgment is a separate public record entry independent of the underlying tradeline. Resolve the matter before either is recorded when possible.

Frequently Asked Questions About Scalley Reading Bates

Is Scalley Reading Bates a legitimate law firm?

Yes. Scalley Reading Bates Hansen & Rasmussen, P.C. is a licensed Utah law firm that has operated since 1971. It holds a BBB A+ rating as of May 2026, though it is not BBB Accredited. The firm represents major national lenders including JPMorgan Chase and is approved counsel for Fannie Mae and Freddie Mac. Contact from this firm regarding a foreclosure, collection lawsuit, or bankruptcy motion requires a timely legal response.

Does the FDCPA apply to Scalley Reading Bates?

The FDCPA applies to Scalley Reading when it acts as a collection attorney pursuing consumer debts on behalf of third-party clients. The Supreme Court confirmed in Heintz v. Jenkins, 514 U.S. 291 (1995), that the FDCPA covers attorneys who regularly litigate to collect consumer debts. However, the FDCPA does not apply to non-judicial foreclosure trustee activity in most circuits, including the Tenth Circuit, unless the trustee also engages in other collection conduct. Your rights in a foreclosure context are governed primarily by Utah’s Trust Deed Act and CFPB mortgage servicing rules.

How long do I have to respond to a collection lawsuit from Scalley Reading?

Under Utah Rules of Civil Procedure Rule 7, you have 21 days from the date of service to file a written Answer. Missing this deadline results in a default judgment entered against you automatically. A default judgment authorizes wage garnishment under Utah Code § 78B-5-805 and bank account levies without further court proceedings. Contact an attorney immediately after receiving a summons.

Can I stop a Scalley Reading Bates foreclosure by filing bankruptcy?

Filing a bankruptcy petition triggers an automatic stay under 11 U.S.C. § 362 that immediately halts a pending foreclosure, including a scheduled trustee sale. However, Scalley Reading regularly files motions for relief from the automatic stay on behalf of secured creditors, as confirmed by court records showing Marlon Bates appearing for JPMorgan Chase in 2026 Utah bankruptcy proceedings. If such a motion is filed, you have 14 days under Federal Rule of Bankruptcy Procedure 4001 to file a written objection. Failing to object means the court may grant the motion without a hearing.

What is the statute of limitations on the debt Scalley Reading is suing me for?

In Utah, the statute of limitations is six years on written contracts under Utah Code § 78B-2-309 and four years on open accounts under Utah Code § 78B-2-307. If the last payment or charge-off date falls outside the applicable period before the date Scalley Reading filed the complaint, the lawsuit is time-barred. You must raise the statute of limitations as an affirmative defense in your written Answer or the defense is waived.

What are my rights under TILA if Scalley Reading’s client violated the Truth in Lending Act?

Under 15 U.S.C. § 1635, borrowers have the right to rescind certain residential mortgage loans within three years if the lender failed to make required disclosures at closing. The Tenth Circuit held in Sanders v. Mountain America Federal Credit Union (2012), a case involving Scalley Reading as defense counsel, that borrowers are not required to plead their ability to repay as a condition of invoking TILA rescission. If your loan involved undisclosed fees or missing TILA disclosures, rescission may be available regardless of your current financial position.

Can I sue Scalley Reading Bates for FDCPA violations?

Yes, in contexts where the FDCPA applies. If Scalley Reading’s demand letter or complaint misrepresented the balance owed, included unauthorized fees, or used deceptive language in a collection action, you may file an FDCPA claim in federal court within one year of the violation under 15 U.S.C. § 1692k. Successful claimants receive statutory damages up to $1,000, actual damages, and attorney’s fees paid by the defendant. You may also assert FDCPA violations as counterclaims in the same lawsuit the firm filed against you.

Where can I file a complaint against Scalley Reading Bates?

File complaints through the CFPB complaint portal, the FTC at reportfraud.ftc.gov, and the Utah Attorney General’s office. For ethics-related complaints about attorney conduct, contact the Utah State Bar Office of Professional Conduct. If you believe the firm violated the FDCPA, an attorney can file a civil action on your behalf with fees recoverable from Scalley Reading if the case prevails.

For a broader reference on collection attorneys and the legal standards they must follow, visit our collection attorneys hub. For a searchable directory of collection agencies operating in the United States, see our list of collection agencies.