Unfair Debt Collection Lawsuit Alleges Fair Debt Collection Practices Act Violations

A man has filed an unfair debt collection lawsuit against Nationwide Credit Inc., alleging violations of the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from using unfair, deceptive, and abusive debt collection practices.

Plaintiff Arthur Y. filed the unfair debt collection practices lawsuit in New York federal court.

According to the unfair debt collection practices lawsuit, Arthur, a resident and citizen of the state of New York, says that Nationwide began attempting to collect a debt from him on or about March 4, 2017. Nationwide sent him a collection letter seeking to collect a balance that he owed.

However, the letter allegedly stated that “The Account Balance as of the date of this letter is shown above.” Arthur claims this language implied that the balance may increase at a time later, which he argues is a violation of the FDCPA due to not specifically stating the exact amount owed.

According to the lawsuit, “While it is typical for collection letters to state an ‘amount due’ or a ‘current balance,’ it is not typical for a letter to state that the amount owed is as of a specific date as such language would imply the potential of a different balance of a different date.”

A requirement per FDCPA regulation is for debt collectors to disclose the account balance and to notify the debtor that the balance “may increase due to interest and fees.”

The unfair debt collection lawsuit was filed on one count for the Violation of the Fair Debt Collection Practices Act.

Arthur demands a trial by jury.

Unfair Debt Collection Practices

The Fair Debt Collection Practices Act (FDCPA) is a federal law enacted in 1978 that helps restrain and prohibit harassment and other unfair debt collection practices committed by third-party collectors.

Debt collectors are required to follow rules and regulations set forth by the FDCPA. Some regulations include the hours a debt collector may be in contact. Typical hours set are between 8:00 AM and 9:00 PM. Additionally, a debt collector may attempt to reach a debtor at home or at the office, but if a debtor, at any point, tells the debt collector either verbally or in writing to stop calling, a debt collector must not call that number again.

Further regulations set forth by the FDCPA are that if a debt collector contacts a relative or neighbor of the debtor, he may only do so to try and obtain the debtor’s contact information. The debt collector is prohibited from revealing any information about the debt. The debt collector must also disclose their identity. Third parties of the debtor, such as a neighbor or relative, may also only be contacted one time each.

Actions that debt collectors may do include telling the debtor about the debt owed, which includes also asking for payment. Therefore, because of the regulations set forth by the FDCPA, it is illegal for debt collectors to harass debtors or threaten bodily harm or arrest.

The Unfair Debt Collection Lawsuit is Case No. 1:18-cv-01350-WFK-VMS, 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).

Get a Free Case Evaluation Now

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.