Class Action Lawsuit Claims Ambiguous Collection Letter Violates Debt Collection Laws

A class action lawsuit claims that Diversified Consultants Inc. and Jefferson Capital Systems LLC, both debt collection companies, violated debt collection laws by sending an ambiguous collection letter designed to confuse debtors. 

Lawyers are investigating allegedly ambiguous debt collector letters like those sent by Diversified Consultants Inc. (DCI) and Jefferson Capital Systems LLC (JCS). If you received an ambiguous collection letter you may have a legal claim.

Wisconsin plaintiff Ronald U. claims that on March 8, 2018, he received an ambiguous debt collector letter from Diversified Consultants Inc. claiming that he owed a debt of $181.59, and notifying him that the ownership of the debt had been transferred.

According to Ronald, the letter was intentionally ambiguous and was a form letter with information specific to Ronald inserted into the letter. He alleges it was an intentionally ambiguous collection letter, designed to confuse him about the nature of the debt he supposedly owed.

Ronald claims that “the unsophisticated consumer would not be able to determine who actually holds the debt from reading [the letter] which identifies four separate entities potentially seeking to collect the debt: WebBank, Bluestem Brands Inc., JCS, and DCI.” According to Ronald, the letter states that “the ownership of the account was ‘transferred’ from WebBank to Bluestem Brands Inc., purchased by JCS, and that DCI ‘will be servicing your account on the new owner’s behalf.” He argues that this language is inherently ambiguous, and the ambiguous collection letter violates debt collection regulations.

Ronald claims that the two companies’ practice violates the Federal Trade Commission’s Fair Debt Collection Practices Act (FDCPA), an act whose goal, he states, is to “protect consumers from receiving false and misleading information.”

Ronald states that the FDCPA prohibits debt collectors from using false and deceptive statements to collect a debt, and using confusing statements to attempt to collect a debt falls under the category of “false and deceptive” debt collection practices.

Ronald argues that he was injured in that he had to spend time and money to investigate the nature of the letter and the information it confusingly tried to convey. He seeks damages for himself and any other consumers who received a similarly ambiguous collection letter from Diversified Consultants Inc.

However, while Ronald does claim injury because of the companies’ practice, according to the confusing debt collection practices class action lawsuit, individuals claiming a violation of the FDCPA do not have to cite any injury beyond a violation of the FDCPA . He cites a preceding FDCPA violations case, which stated that “Congress does have the power to enact statutes creating legal rights, the invasion of which creates standing, even though no injury would exist without the statute.” The DCI class action lawsuit claims that Congress established an authorized award of statutory damages for each violation to encourage individuals to report violations.

If you received an ambiguous collection letter or similarly confusing debt collection communication, especially if you live in Illinois, Indiana, or Wisconsin, you may have a legal claim, and you could collect statutory damages of $1,000 per violation. Unfair debt collection practice lawyers are investigating the possibility of a debt collection lawsuit to help individuals around the country, especially residents of Illinois, Indiana, or Wisconsin receive the compensation they deserve.

The Diversified Consultants Inc. Debt Collection Practices Class Action Lawsuit is Case 2:18-cv-00679-NJ, in the United States District Court for the Eastern District of Wisconsin, Milwaukee Division.

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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).

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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.