Debt Collection Class Action Lawsuit Alleges Abusive Debt Collection Letters

Van Ru Credit Corporation is facing a new debt collection class action lawsuit, alleging the  business violated state and federal debt collection laws.

The debt collection class action lawsuit is being led by a New York man, alleging the financial institution had sent a misleading debt collection letter that was specially meant to intimidate him into paying the debt.

Plaintiff Nachman Weinberger is the leading the debt collection class action lawsuit on behalf of himself and others similarly situated with the same alleged debt collection harassment. Weinberger claims he received a debt collection letter on Feb. 6, 2017 trying to collect a consumer debt.

Weinberger alleges the letter was specifically worded in a way to be deceptive and confusing, with statements like “settling a debt for less than the balance owed may have tax consequences and Discover may file a 1099C form.”

The plaintiff alleges this letter was worded in away that would make it difficult to interpret, unless the consumer had sophisticated and relevant legal knowledge. This means that the debt collection was letter was designed to be confusing and intimidating, Weinberger says. He also states the debt collection letter gave no methods of disputing the debt.

Weinberger ultimately alleges the credit union committed several violations of state and federal debt collection laws. He opted to file the debt collection class action lawsuit after learning other consumers experienced similar collection efforts.

Overview of New York and Federal Debt Collection Policies

New York is one of the most progressive states in the country when it comes to  consumer protection laws, keeping a strict standard of conduct for financial institutions practicing debt collection. In early 2015, New York Governor Andrew Cuomo and the New York Department of Financial Services enacted new regulations for debt collectors to follow.

These policies focused on requiring New York debt collectors to disclose the statute of limitations of the debt to consumers and to give consumers the chance to refute an expired claim. In addition, New York debt collectors are not allowed to engage in any harassing or misleading methods in trying to collect debt.

New York residents are not the only consumers protected by strict debt collection rules. The Fair Debt Collection Practices Act requires all debt collectors to practice their profession fairly. Enacted in 1978, the FDCPA was meant to help consumers defend themselves against aggressive and abusive debt collection practices.

Under the FDCPA, consumers have the right to refute the amount and validity of the alleged debts and can pursue legal action if the harassment does not stop. With the FDCPA in place, debt collectors are not allowed to do the following to consumers:

• False statements and deceptive practices
• Collection of debts not owed
• Collection of old debts
• Making improper reports to credit reporting agencies
• Failure to cease communication upon request
• Improper communication with third parties

Debt collectors who are found to be in violation of the FDCPA can face up to $1,000 per violation, along with any other relevant damages.

Weinberg filed this debt collection class action lawsuit alleging Van Ru Credit Union knowingly and willingly violated the FDCPA and New York debt collection laws when they sent the debt collection letter.

This Debt Collection Class Action Lawsuit is Nachman Weinberger v. Van Ru Credit Corporation, Case No. 1:17-cv-06266-MKB-RML, 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).

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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.