A plaintiff, Sara B., has filed a lawsuit in the federal court of New York alleging violations of the New York Fair Debt Collection Practices Act (NYFDCPA).
According to the debt collector class action lawsuit, Sara is a citizen of New York. She has filed this lawsuit against defendant Northland Group Inc., which attempted to collect a debt from her.
The debt collector class action lawsuit states that in July 2016, the defendant first sent a letter to Sara to collect on a debt that she had owed. However, as noted in the debt collector class action lawsuit, Sara could not tell from the letter whether the “past due account balance” was or was not accruing interest.
As required by and stated within the FDCPA, debt collectors are required, when notifying their consumers of their account balance, to disclose whether or not their balance will accrue any interest.
As alleged in the debt collector class action lawsuit, “the said collection letters at issue were increasing daily due to interest…” But, according to the lawsuit, the letter which was sent in July 2016 failed to note whether the account balance would increase due to interest.
Sara alleges that the letter dated in July 2016, was “misleading” and “confusing.”
The debt collector class action lawsuit contends, “at the bare minimum, a debt collector must make clear even to the unsophisticated consumer that it intends to waive the accruing post charge-off interest. A debt collector must disclose that the balance due may change over time.”
The debt collector class action lawsuit argues that the defendant was required to include in a disclosure and letter first sent out that there is interest accruing on the owed debt.
According to the law, a “past due account balance” must state the full and fair disclosure if a credit card is being charged interest. If so, a “disclosure of such a waiver is necessary” to a consumer or they would never know what the full balance is.
The debt collector class action lawsuit contends that the defendant is in violation of the Fair and Debt Collection Practices Act. Additionally, due to this violation, the plaintiff, and those similarly situated are entitled to damages in accordance with the FDCPA.
According to the Federal Trade Commission, “A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt.”
Congress has targeted such behavior of debt collection complaints because it found that, “abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.”
The Debt Collector Class Action Lawsuit is Case No. 1:17-cv-05678-BMC, 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).
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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