Debt Collection Letter Language Prompts Class Action Under FDCPA

A class action lawsuit has been filed against Convergence Outsourcing alleging their debt collection letter language violated the Fair Debt Collection Practices Act.

Plaintiff Jayson Carr filed a class action lawsuit against Convergence Outsourcing alleging that the company used illegal debt collection letter language when pursuing debt collection.

Carr says he owes a debt to Synchrony Bank for medical services and that the debt was referred to Convergence Outsourcing for collection. Carr argues that Convergence Outsourcing misinformed him of the amount he had to pay.

In a letter sent to Carr, Convergence Outsourcing allegedly did not disclose that he would be liable for accruing interest if he did not pay the initial sum. Carr argues that Convergence Outsourcing violated the New York Fair Debt Collection Practices Act with the debt collection letter language.

The federal Fair Debt Collection Practices Act protects consumers from unfair or abusive debt protection practices. It gives individuals the right to dispute the debt and controls how and when a debt collector may contact you. Although business debts are not covered under The Fair Debt Collection Practices Act, most consumer debts are covered including personal credit cards, student loans, and medical debts.

New York’s debt collection laws offer even more debtor-friendly provisions than the FDCPA. The new rules were passed in 2015 to increase debt collection protections for New York citizens. New York debt collection law adds additional protections and require disclosures for the following situations:

• Initial Disclosures: Debt collectors must provide a clear written notifications about consumer rights under the Fair Debt Collection Practices Act and the New York Fair Debt Collection Practices Act.
• “Zombie Debt” Disclosures: Debt collectors must include a notification if they believe the statute of limitations has expired or other related situations.
• Substantiation Requirements: Consumers may request a substantiation of a debt at any time with a written or oral request.
• Debt Settling Requirements: If a consumer and debt collector settle a debt, the collector must provide the consumer with a written agreement as proof of the debt settlement.

Carr argues that by not disclosing that Carr was required to pay additional interest on his debt if he did not pay it in full, Convergence Outsourcing violated the Fair Debt Collection Practices Act. Carr alleges that they did not “properly and effectively convey the amount of the debt and/or did not properly covey the language”.

Carr is filing his suit as a class action lawsuit because he believes that his letter was not an individual occurrence and similar letters were sent out en masse to consumers that were sent to collections by Synchrony Bank. Carr seeks to represent a Class of individuals who were sent a letter similar to the one Carr received in the past year. The class action lawsuit seeks a trial by jury, damages, court costs, and attorneys’ fees.

The New York FDCPA Class Action Lawsuit is Carr v. Convergence Outsourcing Inc., Case No. 2:18-cv-01477-ADS-GRB, in the U.S. District Court for the Eastern District of New York.