Melissa LaFreniere  |  December 11, 2015

Category: Consumer News

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fdcpa fdcpa lawsuit
A debt collection class action lawsuit has been filed by a Wisconsin man who claims a lender engaged in unfair debt collection practices while trying to receive payment for a student loan.

Lead plaintiff Christopher Neldner, II is suing Allied Interstate LLC over allegations of three counts of Fair Debt Collection Practices Act (FDCPA) violations.

According to the unfair debt collection class action lawsuit, Neldner received a letter in the mail from Allied regarding a Sallie Mae student loan. Neldner claims that the debt collection letter offered a “settlement” amount, which was 50 percent of what he allegedly owed.

According to the terms of the settlement offer, Allied insisted that after the deadline imposed by the debt collection agency, they would be allowed to either revoke the offer entirely or modify it.

Neldner claims that the wording on the settlement offer would confuse an unsophisticated consumer by giving “a false belief that he or she must hurry to take advantage of a limited time opportunity, when in reality, there is no such time limit.”

The FDCPA class action lawsuit claims that one month after receiving the unfair debt collection letter, Neldner received a second offer from Allied giving him an opportunity to reduce the loan interest rate to 0.001% for the full term of the repayment agreement.

Neldner states that Allied intended to send the second letter to all consumers who didn’t respond to the first one, despite the alleged limited-time settlement offer.

The unfair debt collection class action lawsuit claims that providing a false “deadline” in the first offer violates the FDCPA because it would have been misleading to the unsophisticated consumer.

If the FDCPA class action lawsuit is approved, Neldner hopes to represent Class Members within the state of Wisconsin who were sent a letter from Allied regarding a personal, family or household debt on or after March 24, 2014. Neldner believes there are more than 50 potential Class Members who would be eligible to join.

FDCPA Violations Overview

While attempting to collect an unpaid debt is completely legal, there are certain aggressive practices that have been deemed illegal under the Fair Debt Collection Practices Act. Plaintiff Neldner’s FDCPA lawsuit claims that the debt collector used false and deceptive practices which is covered under the federal law.

Other FDCPA violations include:

  • Collection of Debts Not Owed: Bill collectors cannot pursue an individual that does not owe a debt. This scenario occurs in some identity theft cases.
  • Telephone Harassment: Debt collection agencies may only call between the local hours of 8 a.m. and 9 p.m. Further, they are not allowed to let the phone ring repeatedly or continuously with the intent of annoying or harassing a debtor. 
  • Debt Collection Harassment: Collectors are not allowed to use threats or abusive language aimed at debtors. In addition, they cannot repeatedly contact debtors, especially if they have a written request to stop.
  • Expired Debt Collection: Bill collectors are mostly prohibited from trying to collect debts that are in default for four years or more. However, some creditors fail to disclose that the debt has expired.
  • Contacting Third Parties: Bill collectors who communicate with a debtor’s family, employers or anyone else in an effort to collect a debt are in violation of the FDCPA.

Unfair Debt Collection Class Action Lawsuit Investigation

Violations of the FDCPA can award victims $1,000 in statutory damages, plus actual damages including emotional distress. If you have been harassed by a bill collector who is not engaging in legal debt collection practices, you may have a legal claim. 

The FDCPA Class Action Lawsuit is Case No. 2:15-cv-00327-RTR in the U.S. District Court for the Eastern District of Wisconsin, Milwaukee Division.

Join a Free Unfair Debt Collection Class Action Lawsuit Investigation

If 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).

Get a Free Case Evaluation Now

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.

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