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A woman alleges that a debt collection company engaged in unfair and illegal debt collection practices in violation of the Fair Debt Collection Practices Act.
Plaintiff Martha Montoya recently filed an FDCPA class action lawsuit against Cavalry Portfolio Services LLC., alleging that they engaged in illegal debt collection practices in violation of state law.
Montoya, who owes a debt that was sent to collections, received a letter from Cavalry in April 2017. Montoya claims that the letter she received was misleading and deceptive because it did not name or label the creditor, original creditor, current creditor, account owner, or creditor to whom the debt is owed.
“The Letter indicates that if a payment is made by credit card, the credit card statement will reflect a charge from Defendant only,” her complaint reads. She says the letter does not state how a payment will affect her standing with the creditor.
Montoya alleges that the identification and naming of all parties is vital information to the communication, and that Cavalry has a duty to provide clear communication regarding her debt. She argues that the FDCPA “prohibits a debt collector from using any false, deceptive, or misleading representation or means in connection with the collection of any debt”.
“Even if a debt collector conveys the required information, the debt collector nonetheless violates the FDCPA if it conveys that information in a confusing or contradictory fashion so as to cloud the required message with uncertainty,” the lawsuit states.
The Fair Debt Collections Practices Act (FDCPA) is a federal law originally passed by Congress in 1978. The federal law was passed to combat illegal debt collection practices. FDCPA has established rules for debt collectors working for loan companies which help protect consumers from aggressive and abusive practices which pressure consumers to pay their debts under distress or confusion.
Collections communications are determined to be misleading from the perspective of the “least sophisticated consumer”. If the communication is read by the least sophisticated consumer to have two or more meanings, one of which is inaccurate, the communication can legally be deemed deceptive. By sending a letter without identifying all parties, Montoya claims, Cavalry is allegedly engaging in illegal debt collection practices in violation of the FDCPA.
Montoya claims that Cavalry engages in regular debt collection and it is reasonable to believe that they are using illegal debt collection practices, as with her allegedly misleading letter, with all of their accounts.
Montoya seeks to represent a Class of people in New York from whom Cavalry attempted to collect a debt using illegal debt collection practices including misleading letters. The class action seeks class certification, damages, court costs, and attorneys’ fees.
The FDCPA Class Action Lawsuit is Montoya v. Cavalry Portfolio Services LLC, Case No. 2:18-cv-02433-ADS-GRB, in the United States District Court for the Eastern District of New York.
Join a Free Unfair Collection Practices Class Action Lawsuit Investigation
If you’ve been hit with 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).
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.
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6 thoughts onClass Action Alleges Misleading Letters Are Illegal Debt Collection Practices
Addme please
Add me please.
Addme please
Add me
Please add me. I am tired of being tricked with inaccurate information. Thank you.
I live in Georgia and received a letter from them some years ago and didn’t know what it was about because they didn’t list a creditor and said I owed them money.