FDCPA Lawsuit Alleges Debt Collector Sent Misleading Letters to Consumers

An FDCPA lawsuit has been filed against Professional Claims Bureau, Inc., a third party debt collector.

Plaintiffs Lynette G., Gladys M., and Edwin O. all reside in Suffolk County, N.Y. They each owe a debt and fell behind on payments they owed. At some point, the debts were assigned to Professional Claims Bureau (PCB) for collection.

In its efforts to collect on each debt, PCB sent “materially identical” letters to each defendant in September 2016.  The plaintiffs say these letters were deceptive in a way that violates the Fair Debt Collection Practices Act.

FDCPA Lawsuit Alleges Letters Were Deceptive

The Fair Debt Collection Practices Act prohibits a debt collector from using a false, deceptive or misleading avenue in the attempt to collect any debt. “The question of whether a collection letter is deceptive is determined from the perspective of the ‘least sophisticated consumer,’” the FDCPA lawsuit says.

“The least sophisticated consumer would likely be deceived by the letters,” alleges the FDCPA lawsuit.

Among the faults allegedly found in the letters:

• The letters do not indicate who PCB represents.
• The letters don’t name the company that the plaintiffs should make their checks payable to.
• The letters say “Re:” and the name of an alleged entity, but it is unclear if the “Re:” refers to the account owner, the plaintiffs’ creditor, the current creditor or the original creditor.
• The letters imply that a payment made by credit card will result in a statement indicating a charge from PCB only.

The FDCPA lawsuit alleges, “The least sophisticated consumer would likely be confused as to the name of the creditor to whom the debit is owed.” The plaintiffs also claim these letter can be interpreted to have two or more meanings, and one would be completely inaccurate, which makes the letters deceptive.

FDCPA Enacted to Protect Consumers

The Fair Debt Collection Practices Act is designed to protect consumers from unfair and deceptive debt collection maneuvers. At the time  it was passed, existing laws were inadequate to protect consumers from abusive debt collectors, whose tactics helped lead to personal bankruptcies, financial tension within relationships, job loss, and invasions of privacy.

The FDCPA says that if a consumer notifies a debt collector in writing that the debtor refuses to repay a debt or that the debtor wants the collector to stop communication, the debt collector needs to abide that request, with only certain exceptions.

Debt collectors are prohibited from harassing, oppressing or abusing consumers in connection with the collection of any debt. No threats are tolerated; the debt collector cannot threaten harm to the physical person, reputation or personal property. Obscene or profane language is prohibited as well.

Creditors are not allowed to cause a phone to ring or to repeatedly speak to a debtor over the phone as a way to annoy, abuse or harass the consumer.

If you have been the target of a debt collector who has used deceptive or abusive practices, you could benefit from speaking with a lawyer regarding your legal options.

The FDCPA Lawsuit is Case No. 2:17-cv-05225-LDW-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.