FDCPA Class Action Lawsuit Alleges Debt Collector Violated Federal and State Laws

A man has filed an FDCPA class action lawsuit against GC Services Limited Partnership over alleged violations of the Fair Debt Collection Practices Act (FDCPA).

The plaintiff, Ilya Khaimov, alleges she received a collection letter from GC Services in February 2017. The communication indicated the company was seeking to collect on an unpaid account allegedly owed to Citibank NA, according to the complaint.

The debt collection letter stated that Khaimov owed a certain amount of money, but that the final amount might vary “because of interest, late charges, and other charges that may vary from day to day.” As a result, Khaimovclaims, even if he paid the amount due as given in the letter, he still might need to pay more after the collection agency received his check. According to the FDCPA class action lawsuit, GC Services failed to adequately and honestly convey the amount of debt.

The law states that within five days of initial communication regarding debt collection, the debt collector must send a written notice including an itemized list of the debt owed. The notice must include whether interest, late fees, or other fees are continuing to accrue.

In order to be FDCPA compliant, the notice “must allow the least sophisticated consumer to determine the minimum amount he or she owes at the time of the notice,” according to Khaimov’s complaint.

FDCPA Class Action Lawsuit Alleges Several Violations

Khaimov received a letter from GC Services that allegedly failed in several ways to comply with the FDCPA. According to the FDCPA class action lawsuit, the letter failed to:

• Inform Khaimov whether the amount listed is the actual amount due.
• Indicate whether the amount already included interest.
• Indicate if the amount listed included “other charges” and if so, what those “other charges” are, when they would be applied, and what the nature of those charges are.
• Cite the amount due that is principal only.
• Indicate the interest rate, when interest would be applied, and how the interest rate would increase the amount due per day, per week, or per month.

The FDCPA class action lawsuit also alleges the “least sophisticated consumer could reasonably believe that the debt could be satisfied by remitting the listed amount as of the date of the letter, at any time after receipt of the letter.”

Another FDCPA violation occurs when a debt collector requires a consumer to dispute the debt in writing. According to the lawsuit, the collection letter indicated a “correspondence and payment mailing address” making it appear as though all disputes had to be communicated in writing, invalidating the plaintiffs legal right to verbally dispute the debt.

The FDCPA class action lawsuit seeks to represent all New York consumers who received a similar collection letter from GC Services regarding a debt owed to Citibank NA. The class period begins Feb. 9, 2017, and potentially could include thousands of citizens.

The FDCPA Class Action Lawsuit is Ilya Khaimov v. GC Services Limited Partnership, Case No. 1:18-cv-00899-BMC 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.