Woman Claims Debt Collection Demand Letter Violates FDCPA

A New York resident recently filed a lawsuit against a collection agency, alleging its debt collection demand letter violates the rules of the FDCPA.

The plaintiff, Amanda L., allegedly owed a debt to North County Precision Medical incurred prior to May 2017. North County Precision Medical then contracted the collection of this debt out to Falcon Recovery Systems, a debt collection agency based in New York.

Subsequently, Amanda says she was hit with a debt collection demand letter from Falcon Recovery on May 11, 2017, attempting to collect on her alleged debt.

According to Amanda’s lawsuit, the debt collection demand letter sought to collect a balance of $36—a straightforward enough demand. But she says one part of the debt collection demand letter was particularly confusing, reading: “Be advised failure to respond to this notice will be considered a willful evasion and may result in legal collection efforts.” Amanda says she took this statement to mean that, if she did not immediately pay the fine, she would be considered evading or breaking the law.

The debt collection demand letter further noted that “an interest rate may be charged to all accounts outstanding after 30 days,” which the lawsuit alleges is misleading. According to the FDCPA lawsuit, the least sophisticated consumer would read this statement in a similar way, fearing legal action if they did not pay immediately, and fearing that additional charges would accrue.

Amanda filed her lawsuit on behalf of herself and anyone in a similar situation who received a debt collection demand letter employing these tactics from Falcon Recovery. Those included in the proposed Class are residents of New York who received a debt collection demand letter from Falcon Recovery that used either one of these key phrases in the letter.

Amanda’s debt collection demand letter lawsuit was filed on April 18, 2018 in the U.S. District Court for the Northern District of New York.

Basics of the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from debt collection agencies that may try to take advantage of them through abuse or harassment.

According to the rules set forth by the FDCPA specifically, debt collection agencies have a duty to consumers to be extremely clear in their letters. A good way to think of this, in legal terms, is by referencing the “least sophisticated consumer.” Many FDCPA lawsuits allege that the “least sophisticated consumer” would be misled or confused by.

Filing an FDCPA Lawsuit

If you live in New York and have been affected by unfair, harassing, or abusive practices from a debt collection agency, such as a confusing debt collection demand letter, you may be able to file an FDCPA lawsuit.

The Debt Collection Demand Letter Lawsuit is Case No. 8:18-cv-00475-FJS-CFH, in the U.S. District Court for the Northern District of New York.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

If you live in New York and a lender or debt collector engaged in unfair debt collection practices, you may have a legal claim and could be owed compensation for violations of the Fair Debt Collection Practices Act (FDCPA).

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DISCLAIMER: Debt collection itself is not illegal. However, debt collection firms collecting on consumer debts must adhere to the FDCPA. Even though debt attorneys are investigating these companies, their debt collection practices may be legal.