Debtror Says Collection Agency Violates Fair Debt Letter Requirements

Plaintiff Daniel W. of New York has filed a Fair Debt Collection Practices Act lawsuit against Allied Interstate LLC, alleging the debt collection agency failed to follow fair debt letter requirements.

According to this FDCPA lawsuit, Daniel had fallen behind on payments of a debt. As a result, the debt owed was assigned to Allied for collection purposes.

The lawsuit says that in an effort to collect the debt, Allied had contacted Daniel through a letter dated Nov. 2, 2016.

Daniel alleges Allied Interstate’s letter fails to follow fair debt letter requirements regarding validation of the debt. In the letter sent to debtor, the FDCPA requires the collector to state that within thirty days of the receipt of the letter, if the consumer has not disputed the debt, the debt will be assumed valid by the debt collector.

Daniel alleges Allied Interstate’s letter failed to include this language.

Daniel further argues that under the FDCPA, “there is no requirement that the consumer dispute the debt in writing.” The complaint states that it is a violation of the FDCPA to require disputes be made in writing.

Under FDCPA fair debt letter requirements, the letter must be understandable to the least sophisticated debtor. Daniel says Allied Interstate’s letter doesn’t even meet that requirement.

Additionally, the complaint contends that the letter does not clearly tell him how much he must pay. The letter had stated that the amount owed was $1,161. But the letter also says that “because the creditor continues to assess interest on the debt, the amount due on the day you pay may be greater.”

Daniel says that “the letter fails to provide information that would allow the least sophisticated consumer to determine the amount of interest owed.”

Fair Debt Collection Practices Act Facts

According to the Federal Trade Commission (FCC), the Fair Debt Collection Practices Act prohibits debt collectors from using unfair, deceptive, and abusive practices against any debtor in an attempt to collect on any debt owed.

The law requires debt collectors to honor debtors’ request to cease contacting them. This requirement doesn’t prevent collectors from continuing to pursue the debt by other means, but it should put an end to repeated phone calls and letters.

Collectors are also prohibited from contacting third parties more than once, and a written “validation notice” is required to be sent by a debt collector.

According to the FCC, “every collector must send you a written ‘validation notice’ telling you how much money you owe within five days after they first contact you.” The notice should state who the creditor is and what the alleged debtor can do if they believe they don’t owe the money.

The Fair Debt Letter Requirements Lawsuit is Case No. 2:17-cv-06337-ADS-AYS, in the U.S. District Court for the Eastern District of New York.

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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.