Disputed Debt Lawsuit Accuses Indiana Debt Collector of FDCPA Violations

A disputed debt lawsuit was recently filed by a woman against National Recovery Agency, a debt collection company in Indiana, over allegations that the company violated the FDCPA, or Fair Debt Collection Practices Act.

Plaintiff Megan A. filed the disputed debt lawsuit in Indiana federal court. The lawsuit was filed on July 20, 2018.

According to the disputed debt lawsuit, National Recovery attempted to collect a debt that was owed by Megan that had allegedly gone into default. After their attempt to collect on the debt, however, Megan says she requested the company to cease all further communication on the debt, the lawsuit states, and she sought legal counsel to dispute the debt.

However, the debt collector allegedly reported to TransUnion credit reporting agency that Megan still owed the debt–even though FDCPA regulations restrict and prohibit the reporting of a debt that is under dispute. Consumers “must simply make clear that he or she dispute the debt,” the lawsuit states.

Megan accuses the company of continuing to report Megan’s debt as being owed and failing to report that the debt was in dispute.

The disputed debt lawsuit was filed on one count of violation of the FDCPA.

Overview: Disputed Debt

Millions of consumers in the United States have been victims of violations of the FDCPA, or Fair Debt Collection Practices Act–a set of laws that help protect individuals from abusive and unethical debt collection practices.

The FDCPA was enacted in 1978 and helps protect consumers against harassment and other unfair debt collection practices committed by third party debt collectors. Some unfair debt collection practices include the following:

• Harassment
• Making threats
• Calling at inconvenient times of the day, or calling too often
• Adding collection charges and fees to your debt
• Sending confusing letters
• Communicating with third parties about your debt
• Making robo-calls
• Collecting on old debts

Alleging that they have become victims of violations of the FDCPA, thousands have been forced to filed disputed debt lawsuits, such as the most recent filed in Indiana. The FDCPA, however, sets many rules and regulations that must be followed. For example, when collecting on debts, debt collectors may not sue or threaten to file suit on debts that have been time-barred.

Debt collectors are also not allowed to submit improper reports to credit agencies, and are limited in what they can or cannot report. Debt collectors can only tell a debtor about the debt and request payment. However, while a debt collector can reach out to a debtor at either the office or at home, once a debtor tells a debt collector to stop all contact, either in writing or verbally, a debt collector must never call that number or be in contact again.

Damages for FDCPA violations may include damages for financial losses that come about through FDCPA violations. Other damages can be obtained for emotional distress, lost wages, wage garnishment, and statutory damages of $1,000.

The Disputed Debt Lawsuit is Case No. 1:18-cv-02226-RLY-MJD, in the U.S. District Court for the Southern District of Indiana, Indianapolis Division.

Join a Free Unfair Collection Practices Class Action Lawsuit Investigation

If you’ve been hit with 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.