Ashley Milano  |  October 17, 2014

Category: Consumer News

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debt collectionA Wisconsin resident has filed an illegal debt collection class action lawsuit against  Nations Recovery Center (NRC) for violations of the Fair Debt Collection Practices Act (FDCPA).

Nations Recovery Center is a debt collection agency based in Georgia and uses mail and telephone as a means to collect consumer debts. The FDCPA class action lawsuit alleges that Nations Recovery Center participated in unlawful debt collection practices by falsely informing consumers that it held a Wisconsin Collection Agency License.

Plaintiff Ismet Deari alleges in the Nations Recovery Center class action lawsuit that he received a letter regarding a consumer debt from Nations Recovery Center that allegedly stated, “This collection agency is licensed by the Division of Banking, P.O. Box 7876, Madison, Wisconsin 53707.”

The Nations Recovery Center class action lawsuit alleges that NRC violated the FDCPA, which specifically prohibits a debt collector from using “a communication which simulates legal or judicial process or which gives the appearance of being authorized, issued or approved by a government, governmental agency or attorney−at−law when it is not.”

By using a letter that falsely represented its licensing status, Nations Recovery Center used a communication which gave the appearance of being authorized or approved by a governmental agency (the Division of Banking), the class action lawsuit claims.

The Nations Recovery Center class action lawsuit is seeking to represent all consumers in the State of Wisconsin who were sent a debt collection letter stating that Nations Recover Center Inc. is licensed by the Division of Banking on or after Oct. 9, 2013.

What is the Fair Debt Collection Practices Act?

The FDCPA was passed by Congress in 1978 to combat the unfair debt collection practices used by many creditors and debt collectors. Although debt collection is perfectly legal, the FDCPA has established rules for the collection of consumer debts and provides protections to debtors by enabling them to challenge creditors and determine the validity and accuracy of asserted debts. Despite these debt collection laws, many debt collectors reportedly engage in illegal conduct in an attempt to collect on debts.

Under the FDCPA, a debt collector is anyone who regularly collects debts that are owed to others, including debt collection agencies, companies that purchase and attempt to collect on delinquent debts, and debt collection lawyers who help companies who help creditors, debt buyers, or even debt collection firms.

Many states have enacted their own state versions of the FDCPA that apply to and regulate not only debt collectors but also creditors, including banks, credit card companies, etc.

The FDCPA prohibits any false, deceptive, or misleading representation or means in connection with the collection of any debt. If a debt collector is found to have violated the FDCPA, the debtor is entitled to receive $1,000 in statutory damages, plus any actual damages that they have suffered, for each violation.

Deari is seeking all actual damages and statutory damages for Nations Recovery Center’s alleged violation of the FDPCA and all reasonable court costs. He has demanded a jury trial for this case.

The Nations Recovery Center Debt Collection Class Action Lawsuit is Ismet Deari, et al., v. Nations Recovery Center Inc., Case No. 14-cv-1257, U.S. District Court for the Eastern District of Wisconsin Milwaukee Division.

Join a Free FDCPA Class Action Lawsuit Investigation

If you believe you were the victim of unfair debt collection practices under the FDCPA, you may have a legal claim.

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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.

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