FDCPA Class Action Lawsuit Filed over Debt Collection Practices

A New York man believes he has been unfairly treated by a collection agency and has filed a FDCPA class action lawsuit against the creditor.

Plaintiff John M. of New York allegedly incurred a financial obligation to a company called Tempoe, LLC. This debt, according to the FDCPA class action lawsuit, was incurred for personal reasons and not for a business.

Because this debt was outstanding and past due, this FDCPA class action lawsuit alleges that Tempoe referred this debt to collection agency Glass Mountain. It did so after it sold the debt to a company called Security Credit.

On Sept. 7, 2017, Glass Mountain sent John a collections letter, according to his FDCPA class action lawsuit. The letter stated that he owed $1,990 “as of the date of this letter.” It went on to say, “Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day may be greater.”

In essence, John claims the letter did not give a clear indication of exactly how much was owed, but was instead confusing.

It also said, “… if you pay the amount shown above, an adjustment may be necessary after we receive your check, in which event we will inform you before depositing the check for collection.” The letter provided an address and a phone number if an individual wanted further information.

Allegedly, Glass Mountain did not provide an itemized list of what was due. This FDCPA class action lawsuit claims that Glass Mountain also did not provide any information about the rate of interest, what the other charges were, how those charges would be calculated, or what portion of the balance due reflects interest or late charges.

Fair Debt Collection Practices

This FDCPA class action lawsuit alleges that this communication from Glass Mountain violates federal law. The FDCPA is the Fair Debt Collection Practices Act. This is a federal law that was passed in 1978 by Congress to prevent collection companies from using unfair tactics to collect on owed debts.

The FDCPA sets out rules that these companies must follow and protects those who owe debts by allowing them to challenge their creditors and the validity of their debts. Regardless of federal law, many collection agencies still practice unfair tactics that fly in the face of the FDCPA.

Furthermore, the state of New York has even stronger fair debt collection practices. New York’s debt collection laws are some of the strictest in the country. These New York regulations focus on statute of limitation disclosures, general collection and amount specific disclosures, debt validation requirement and the use of email to communicate about a debt.

John believes that Glass Mountain violated fair debt collection laws by “using false, deceptive or misleading representation or means in connection with the collection of a debt” and by “threatening to take any action that cannot legally be taken or that is not intended to be taken.”

This FDCPA Class Action Lawsuit is Case No. 7:17-cv-09243-VB in the United States District Court for the Southern District of New York.