Debt Collection Letter Lacks FDCPA Required Language, Sparks Lawsuit

An FDCPA required language class action complaint has been registered in U.S. District Court, Eastern District of New York as of August 17, 2017.

The complaint was filed by New York resident and plaintiff Rauza T. and concerns alleged debt collection abuses in violation of the Fair Debt Collection Practices Act (FDCPA).

Specifically at issue in this lawsuit is a debt collecting company’s alleged failure to use FDCPA required language in a collection letter sent to supposed debtors of Synchrony Bank throughout New York State.

The defendant that allegedly failed to use FDCPA required language in their collection letter is known as Genpact Services LLC and is based out of Southgate, Mich. This debt collection agency uses the telephone, U.S. Postal Service, email and fax machine routinely as methods of contacting debtors, according to the documentation of the lawsuit.

What is the FDCPA?

The FDCPA is federal law that specifically disallows debt collectors from engaging in abusive behavior while trying to secure repayment of a debt. It is a consumer protection act that allows citizens to seek damages if they experience deception or a lack of fairness in a debt collection practice.

What is FDCPA Required Language?

A debt collection letter was sent on behalf of Synchrony Bank by Genpact Services LLC to alleged debtors of the bank, one of whom was plaintiff Rauza T. Rauza says the letter had ill-defined language in it which partly stated:

“The total account balance as of the date of this letter is shown above. Your account balance may increase because of interest or other charges, if so provided in your agreement with your creditor.”
 
The lack of clarity in identifying the actual amount due to resolve the debt in question allegedly was in violation of FDCPA required language. According to this law, the letter needed to communicate the debt clearly and concisely without ambiguity and be easily understood by the most unsophisticated reader.

The letter that Rauza received allegedly does not show a clear numerical representation of the amount of the debt, but a breakdown of the parts of the debt. Genpact Services allegedly failed to identify in simple terms what part of the stated debt was principal, and whether accumulated interest on the principal had already been added.

In addition to this breakdown, there was allegedly no reference to the percentage of interest and at what interval it was accruing such as annually or monthly.

The plaintiff is bringing this action against the defendant on behalf of himself and all similarly situated persons. Said Class Members are those that received a similar letter with like failures in FDCPA required language use.

The plaintiff and other members of the class are bringing the following count against the defendant: Count One – Failure to Adequately and Honestly Convey the Amount of the Debt.

The plaintiff and other members of the class are asking for a jury by trial with a favorable judgement on their behalf with awards in actual and statutory damages, return of court and attorney’s fees, and any further relief deemed just and proper.

This FDCPA Required Language Lawsuit is Case No 1:17-cv-04838-DLI-JO 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.