Demand Letters Violated Wisconsin Debt Collection Laws, Says Plaintiff

National Enterprise Systems is facing a new debtor’s rights lawsuit from a woman alleging the company violated federal and Wisconsin debt collection laws.

The FDCPA lawsuit was filed by a state resident alleging she received debt collection letters trying to collect on an old or expired debt, which is prohibited under Wisconsin debt collection laws.

Plaintiff Rhonda B. opted to file legal action after receiving a debt collection letter from Enterprise Systems. She alleges the letter violated Wisconsin debt collection laws by being confusing and unclear regarding the alleged debt they were trying to collect.

According to the FDCPA lawsuit, Rhonda had received a debt collection letter on July 7, 2017 regarding an amount she allegedly owed to Bank of America. The alleged debt was reportedly incurred from a large credit card purchase, with the letter stating that Rhonda had to pay the debt as soon as possible.

After several months, Rhonda says she received another debt collection letter on Nov. 2, 2017 regarding the same alleged debt. This second letter stated Rhonda owed $1,933.91 and had provided her with several installment payment options to resolve it.

Rhonda reportedly discovered that her debt might not be valid under Wisconsin debt collection laws, after another debt collector, Firstsource Advantage LLC, had mailed a third debt collect letter on Nov. 7, 2017. This letter reportedly included information about statutory debt validation notice, which means that the debt collector must provide notice or means to prove the debt is still valid and not expired.

Overview of FDCPA and Wisconsin Debt Collection Laws

Under Wisconsin debt collection laws, debt collectors are prohibited from trying to collect on an expired debt and cannot use any unreasonable threats to the person’s credit status or personal property.

According to this third debt collection letter, not only was there a question as to the debt’s validity, but the company also stated there could be consequences if the amount was not paid. These consequences included incurring fees, which were unspecified in amount or when they would occur, according to Rhonda.

She claims the previous two debt collection letters were reportedly written in a similar manner, in which the language was confusing and intimidating to the claimant. The FDCPA lawsuit alleges that the letters were meant to do this, to increase the likelihood of the claimant being intimidated into paying.

Rhonda says she presented these debt collection letters to her attorneys, who allegedly found them no less confusing despite their legal background.

Overall, she argues Enterprise Systems violated the FDCPA and Wisconsin debt collection laws on several counts including sending unwanted debt collection letters with a potentially invalid debt.

Wisconsin is one of several states with progressive debt collection laws, which are further strengthened by the federal FDCPA. The FDCPA prohibits debt collectors from using any unwanted and unfair debt collection tactics including, but not limited to:

• Sending confusing debt collection letters
• Trying to collect on expired debts
• Making numerous robocalls
• Using threatening or abusive language in debt collection call or letter
• Not providing any proof or validity of the debt

Rhonda is filing this FDCPA lawsuit seeking damages for alleged violations against this federal policy and Wisconsin debt collection laws, along with any other relevant damages.

This Wisconsin Debt Collection Laws Lawsuit is Case No.: 18-cv-1215, in the U.S. District Court of Eastern Wisconsin, Milwaukee Division.

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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.