FirstSource Advantage LLC Faces New York Man’s FDCPA Violations Lawsuit

FirstSource Advantage LLC is facing a New York man’s FDCPA violations lawsuit alleging the company violated the Fair Debt Collection Practices Act (FDCPA) after receiving a letter that inaccurately stated the amount of his alleged debt.

Plaintiff Jacob L., is a resident and citizen of New York state, and the lawsuit was filed on Nov. 21, 2017 in New York federal court.

According to the FDCPA violations lawsuit, FirstSource sent the letter to Jacob on Nov. 22, 2016.

Jacob claims the letter failed to accurately disclose the total balance owed, allegedly in violation of the FDCPA. It first specified in writing the total balance, yet invited Jacob to contact the company for “the most current balance information,” the FDCPA violations lawsuit explains.

Jacob says that after receiving and reading the letter, he was left uncertain whether there would be an increase to the account balance from the date of the letter.

Additionally, the FDCPA violations lawsuit argues, although it is acceptable that a letter state a “current balance,” it is not acceptable for the letter to imply that there can be a different balance on a different date.

According to the FDCPA violations lawsuit, the FDCPA requires debt collectors, in notifying consumers of their account balance, to disclose the account balance and any accompanying interest and fees. Any omission of interest and fees not disclosed in a letter, if applicable, is considered “misleading” and a violation of the FDCPA.

FDCPA

The Fair Debt Collection Practices Act (FDCPA) was passed in 1978. It protects consumers from unfair debt collection practices and limits the behaviors and actions of third-party debt collectors.

Third-party debt collectors are entities that attempt to collect debt on behalf of other parties. Although the FDCPA does protect consumers against third-party debt collectors, it does not protect consumers from collection of personal debts.

Regulations set in place by the FDCPA includes the time of day a third-party debt collector can contact a debtor to settle a debt. Regulatory times typically set in place for third-party debt collectors are between the hours of 8:00 AM and 9:00 PM. These time limitations must be abided by, unless a collector and debtor plan a call to occur outside of these hours.

Other updated rules in the FDCPA include the restrictions of third-party debt collectors from calling too often; sending confusing letters; collecting on old debts; making threats; making harassing phone calls; and adding fees or collection charges to a debt.

The updated rules and restrictions have been modified to continue protecting and curtailing abusive and harassing debt collection practices by third-party debt collectors.

Under the FDCPA, debt collectors are never allowed to make any threatening or harassing telephone calls. Additionally,  once a debtor objects to further contact by a third-party debt collector, the party must abide by debtor’s demands and not make contact again.

The FDCPA Violations Lawsuit is Case No. 1:17-cv-06836, in the U.S. District Court for the Eastern District of New York.

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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.