Jefferson Capital Systems Faces Class Action FDCPA Violations Lawsuit

A class action FDCPA violations lawsuit has recently been filed against Jefferson Capital Systems LLC by a New York man alleging the company had sent him and numerous other consumers illegal debt collection letters.

Plaintiff Yafa Goldman is filing this class action FDCPA violations lawsuit on behalf of his proposed New York Class Members, alleging Jefferson Capital Systems had utilized illegal and unfair debt collection practices, threatening consumers with intimidating and confusing messages from the company when trying to collect on alleged debts..

According to the class action FDCPA violations lawsuit, Goldman received a debt collection letter from the company in regards to an alleged consumer debt stemming from Cellco Partnership.

Goldman reportedly received this debt collection letter on Dec. 4, 2017, for the collection amount of $2,210.22. However, the way the letter worded it was “the amount of the debt as of the date of this letter,” which Goldman argues does not clarify whether or not the amount stated is the final estimation or if it could change at any point in time.

Goldman alleges this debt collection letter was poorly worded with the intent to confuse and intimidate, to increase the chances of successful collection. Goldman further alleges that these debt collection letters could not be easily interpreted by an average person, and that the letter lacked any language that specified the validity of the debt or if the amount would accumulate with interest.

Most importantly, the debt collection letter provided no option for Goldman to dispute the debt.

Under both New York and federal debt collection laws, Jefferson Capital Systems had violated the privacy rights of Goldman and other class members by sending those unwanted debt collection letters.

Overview of FDCPA Policy

The FDCPA (Federal Debt Collection Protection Act) was established by Congress in 1978 to help consumers defend themselves against aggressive debt collection practices.

While debt collection in itself is legal, the FDCPA prohibits companies from using abusive or intimidation tactics to collect debts. In addition, debt collection companies must provide proof of validity for the debt and give an accurate total amount of the debt to prevent confusion for the consumer.

New York is one of the most progressive states in consumer protection laws, requiring additional polices on top of the FDCPA. In 2015, the state governor and New York Department of Financial Services at the time had placed strong debt collection regulations for companies to follow when contacting consumers.

These regulations focused on details that must be included in debt collection communications including:

• The statute of limitation for collecting the debt
• General collection and account specific disclosures
• Debt validation requirements
• Using email to send debt collection notifications

Similar to the FDCPA, New York debt collectors are prohibited from using abusive or intimidating tactics to collect debts. This behaviors can also include harassment, which is often exhibited in actions like persistent robocalls.

Goldman alleges Jefferson Capital Systems knowingly violated the FDCPA and New York debt collection policies when sending these letters. Goldman is seeking damages for every FDCPA violation, along with any other damages relevant under New York law.

This Class Action FDCPA Violations Lawsuit is Yafa Goldman v. Jefferson Capital Systems LLC, Case No. 1:17-cv-07376, in the U.S. District Court for the Eastern District of New York.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

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.