Debt Collector Hit With Lawsuit For Violating Federal Law

A Tennessee resident recently filed a Fair Debt Collection Practices Act (FDCPA) lawsuit against LVNV Funding LLC.

Plaintiff Kristie J. alleges that LVNV Funding violated the FDCPA in its illegal efforts to collect on a consumer debt.

According to the LVNV Funding unfair debt collection lawsuit, LVNV claims that Kristie incurred a debt initially owned by Credit One Bank. The debt was allegedly incurred in a transaction that was primarily for personal, family, or household purposes.

Kristie’s consumer debt is the type of debt regulated by the FDCPA. LVNV claims that when Kristie’s alleged debt went into default Credit One Bank sold or transferred the debt to LVNV for collection.

In December 2013, LVNV filed a civil collection lawsuit against Kristie. In February 2014, Kristie filed a sworn denial of the debt, the unfair debt collection lawsuit states. Then in August 2014, LVNV decided to drop the collection lawsuit against Kristie.

Although LVNV knew that Kristie was represented by an attorney in the collection lawsuit, it began to contact her personally between April 2014 through October 2014. Kristie received numerous phone calls from LVNV in an attempt to collect her alleged consumer debt.

Because Kristie was represented by an attorney and LVNV was aware of the representation, each of these phone calls to Kristie was allegedly a violation of the FDCPA, which states that after a debt collector knows a consumer is represented by an attorney, the debt collector is prohibited from communicating from any person other than the attorney regarding the consumer debt. The collection phone calls were made to both Kristie’s land line and cell phone, the unfair debt collection lawsuit claims.

The FDCPA lawsuit also alleges that LVNV violated state law in attempting to collect Kristie’s alleged debt. Under the Tennessee civil code, debt collection companies cannot operate a debt collection business unless the company has a valid collection service license issued by the State Collection Service Board.

The FDCPA lawsuit alleges that at the time that LVNV filed the debt collection lawsuit against Kristie, they were not licensed by the Tennessee Collection Service Board. Because of these violations, Kristie is requesting the court award her actual, statutory, and punitive damages.

Overview of the FDCPA

The FDCPA was passed by Congress in 1978 in an attempt to combat unfair debt collection practices. Although collecting on a valid debt is not illegal, there are rules that creditors must follow.

The FDCPA also protects consumers by giving them means to determine the validity of any asserted debts and challenge debt collectors. Unfortunately, many aggressive debt collectors still violate the FDCPA and other state established rules meant to protect consumers. Many consumers who have fallen victim to illegal tactics used by debt collectors and may be entitled to receive compensation.

Companies that may be regulated by the FDCPA include LVNV Funding LLC, Allied Interstate Inc., Arrow Financial Services, Asset Acceptance Corporation, CashCall Inc. and many others.

This Unfair Debt Collection Practices Lawsuit is Case No. 2:15-cv-00039-JRG-DHI, in the U.S. District Court for the Eastern District of Tennessee, Greeneville.

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.