Capital Management Services Accused of Unfair Debt Collection Practices

Capital Management Services LP is facing a class action FDCPA lawsuit for allegedly performing unfair debt collection practices and violating federal and state privacy laws. This class action FDCPA lawsuit is being led by a New York man, alleging the company regularly practiced unfair debt collection practices on him and numerous other consumers.

Plaintiff Aharon Hollender is filing this class action FDCPA lawsuit on behalf of himself and others similarly situated, who allegedly received misleading debt collection letters and harassing phone calls. Hollender reportedly incurred a consumer debt at some point, which was eventually transferred to Capital Management Services.

According to the class action FDCPA lawsuit, Hollender received a debt collection letter on Dec. 18, 2016, stating, “As of the date of this letter, you owe $11,680.04. Because of interest, late charges and other charges that may vary from day to day, the amount due on the day you pay may be greater.”

The letter did not convey the exact amount of the debt, how to contest it, or whether or not the debt would incur interest, Hollender says. The debt collection letter also allegedly did not explain how much the balance may increase, or the specific timeline in which the debt would increase due to interest.

Hollender alleges the letter was specifically worded to confuse less sophisticated consumers that would be easily scared and compel consumers to pay the debt. This essentially means the debt collection letter was deliberately designed to scare and intimidate consumers, which is considered one method of unfair debt collection practices companies are prohibited from using.

In addition to the debt collection letter, Capital Management Services also allegedly tried to contact Hollender through phone calls and left numerous messages to collect on the alleged debt. During these calls, Hollender did not know the identity of the callers or what the calls were about and he alleges these calls were specifically placed to harass him.

Overview of FDCPA Unfair Debt Collection Practices

Under the FDCPA (Federal Debt Collection Practices Act) companies are prohibited from conducting unfair debt collection practices to help protect consumers against aggressive debt collectors. Unfair debt collection practices prohibited by the FDCPA include, but not limited to are:

• Sending misleading or threatening debt collection letters to contain too little or inaccurate information regarding the alleged debt
• Placing debt collection calls to consumers between 8am to 9pm, and not repeatedly placing these calls with the intent to abuse or harass consumers
• Collecting nonexistent or expired debts
• Making improper reports to credit agencies
• Continuing to contact the consumer after being asked to stop
• Improper communication with third parties

While it is not illegal for companies to conduct debt collecting, it is illegal if they use any of the tactics mentioned above. In addition to the FDCPA, New York has additional provision set up against unfair debt collection practices. Additionally, debt collectors must give consumers information on how to contest the alleged debt or provide some proof of validation of the debt.

This Unfair Debt Collection Practices Lawsuit is Aharon Hollender v. Capital Management Services LP, Case No. 1:17-cv-06872, 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.