NCO Financial Hit With Unfair Debt Collection Lawsuit

An unfair debt collection class action lawsuit was filed in New York federal court on Nov. 20 against NCO Financial Systems Inc., alleging the debt collection agency has engaged in illegal debt collection practices, thus violating the Fair Debt Collection Practices Act.

Plaintiff Ephraim S., a resident of New York, alleges in his unfair debt collection class action lawsuit that he received a collection letter from NCO Financial stating the company was attempting to collect on a consumer debt accrued by Ephraim.

Ephraim claims he received this NCO Financial debt collection letter in a window envelope, which displayed Ephraim’s NCO Financial assigned account number clearly above his name and address information.

According to the illegal debt collection lawsuit: “The account number, which appeared through the glassine window and was able to be viewed by any person handling the mail, constitutes an invasion of privacy; as it reveals to the person who sees it, an essential piece of information pertaining to the Plaintiff’s status as a debtor. The account number, when disclosed to the public eye, reveals the consumer’s financial quandary.”

Ephraim claims that NCO Financial’s actions are not benign and has the potential to cause him and other consumers harm by revealing personal financial information through the window envelope.

According to the FDCPA class action lawsuit, NCO Financial’s actions are a “cavalier disregard for the Plaintiff’s privacy.”

Ephraim filed this NCO Financial debt collection class action lawsuit on behalf of himself and other Class Members who have also had their private information violated by NCO.

He is seeking relief from the debt collection in the form of statutory damages, actual damages, payment of attorney’s fees, and any other relief so deemed fit by the court.

The NCO Financial Unfair Debt Collection Class Action Lawsuit is Case No. 1:14-cv-06833-ARR-VVP, in the U.S. District Court for the Eastern District of New York.

What is the Fair Debt Collection Practices Act?

The Fair Debt Collections Practices Act, or FDCPA, is a set of laws set in place by Congress to restrict creditors and debt collectors from practicing unfair debt collection.

Debt collection as a business is not illegal, but debt collection companies must respect borrowers’ rights and follow protocol. According to the FDCPA, unfair debt collection practices that infringe on the rights of the consumer include:

• Debt collection harassment
• Telephone harassment
• False statement and deceptive practices
• Collection of debts not owed by the consumer
• Collection of expired debts
• Improper reporting of the debtors loan to credit reporting agencies
• Refusing to cease communication even under request
• Improper communication between the lenders and other third parties

Dozens of individuals have filed FDCPA lawsuits or joined unfair debt collection class action lawsuits against companies who allegedly practice illegal debt collection practices.

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).

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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.