Calvary SPV Debt Collection Letter Violates Multiple FDCPA Laws, Claims Illinois Plaintiff

A woman from Illinois is alleging violations against FDCPA laws after allegedly receiving an unwanted and confusing debt collection letter from Cavalry SPV LLC.

This debt collection letter reportedly violated FDCPA laws by using confusing or ambiguous language, and by displaying an inaccurate debt amount that was higher than what was actually owed, the plaintiff claims.

FDCPA laws are in place to help protect United States consumers from unfair and aggressive debt collection tactics which are specifically used to confuse and intimidate consumers into paying.

These FDCPA laws prohibit debt collectors from trying to collect on expired debts and must provide validity of the debt, especially if it may be displaying an incorrect debt amount.

Along with FDCPA laws, certain states like Illinois have additional debt collection policies that further protect their citizens and are stricter on collectors. Under the FDCPA, debt collectors are restricted from:

• Sending confusing debt collection letters
• Communicating with third parties about the debt
• Using threatening or abusive language
• Telephone harassment
• Adding additional fees and collection charges to the debt
• Trying to collect on expired debts
• Trying to collect inaccurate debts
• Making calls with an automated dialing system

These FDCPA laws are in place and may help consumers file legal action against debt collection companies for impacting their lives in such a negative way. This was reportedly the case with plaintiff Maria M. of Illinois, who reportedly received a debt collection from Cavalry, which allegedly asked for an incorrect debt collection amount.

Cavalry is a typical debt collection company, according to Maria’s complaint, as it primarily operates as a collector of defaulted consumer debts and uses different communication methods to reach out to consumers. Cavalry also purchases debts from other companies which can potentially cause confusion of what was already paid or what amount is actually owed.

Overview of FDCPA Lawsuit

According to the FDCPA lawsuit, Maria received a debt collection letter from the company on Sept. 2, 2017. The letter allegedly stated that it was an attempt to collect “a debt” and that “any information obtained will be used for that purpose.” The letter allegedly clarified that it was a “communication from a debt collector,” so it can be treated as such for the purposes of her lawsuit.

The debt collection letter reportedly stated that Maria owed an outstanding balance of $1,008.66 and that it was due on a specified date. Maria claims this amount was inaccurate. According to an affidavit obtained for Maria’s FDCPA lawsuit, financial records from Cavalry and their associate CPS had shown that as of Oct. 10, 2017, Maria owed a balance of $971.66.

The FDCPA lawsuit points out that because that balance was from a charged-off debt, it could not increase if no payments were made. Therefore, Cavalry’s debt collection letter stating she owed $1,008.66 was inaccurate.

Maria argues that Cavalry had allegedly attempted to collect on a debt that was not owed, in violation of FDCPA laws. Maria has made no additional payments to any accounts associated with Cavalry, and was forced to file this FDCPA lawsuit after exhausting all other administrative options.

Maria can potentially receive up to $1,000 per violation against FDCPA laws, along with any other damages suffered including emotional distress.

This FDCPA Lawsuit is Case No. 1:18-cv-05771, in the U.S. District Court of the Northern District of Illinois, Eastern Division.

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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.