Debt Collection Letter Violates FDCPA Rules, Plaintiff Claims

A New York man recently filed a lawsuit against the debt collection company United Recovery Systems, claiming its debt collection letter violated FDCPA rules.

The plaintiff, Sean C., was assigned to United Recovery Systems to collect debt owed on payments for which he fell behind. In July 2016, Sean received a debt collection letter, his lawsuit claims, which blatantly violates key FDCPA (Fair Debt Collection Practices Act) rules.

The debt collection letter broke with FDCPA guidelines in a number of ways, Sean alleges. Firstly, United Recovery’s debt collection letter states an amount owed as of the date it was sent, but failed to indicate the actual interest and other fees that Sean would owe on top of this amount. However, debt collectors like United Recovery are actually required to plainly inform consumers that their balance owed may increase because of interest and fees.

Although a debt collection letter like the one received by Sean is supposed to be written to the understanding of the “least sophisticated consumer,” the debt collection letter from United Recovery failed to include basic information like the possibility of late fees and interest accruing, as well as the dates on which these fees might be applied.

Sean filed the lawsuit in response to this debt collection letter on July 24, 2017 in the U.S. District Court for the Eastern District of New York.

Expanded New York FDCPA Rules

The Fair Debt Collection Practices Act (more simply known as FDCPA) is a set of debt collection regulations passed back in 1978 to protect consumers like Sean from unfair debt collection practices and harassment.

The FDCPA’s basic regulations include strict rules about when debt collectors can call consumers (only from 8:00 AM to 9:00 PM). The FDCPA also prohibits debt collectors like United Recovery from calling at work if a consumer objects, as well as threatening or harassing debtors. Under the FDCPA, debt collectors cannot make demands or threats. Instead, they can only offer information to the consumer about their debt and how they can pay it.

New York FDCPA rules are actually more in depth than the FDCPA itself. New York Governor Cuomo intensified the state’s debt collection regulations in 2015, just two years ago.

According to these updated New York debt collection rules, debt collectors are now banned from using the following debt collection practices:

• Sending confusing letters
• Communicating with third parties about a debt
• Making threats
• Harassment
• Adding fees or collection charges to the debt
• Calling too often
• Calling at inconvenient times of day
• Collecting on old debts
• Making robocalls

These updated New York debt collection rules also cover disclosure practices, account information, and debt validation requirements.

Filing a New York FDCPA Class Action lawsuit

If you live in New York and a debt collector agency such as United Recovery Systems has sent a debt collection letter that violates these FDCPA rules or otherwise used unfair debt collection practices, you may be able to file a FDCPA lawsuit.

The FDCPA Debt Collection Letter Lawsuit is Case No. 2:17-cv-04370-ADS-AKT, in the U.S. District Court for the Eastern District of New York.