FDCPA Lawsuit Alleges Wells Fargo’s Car Repossession Violates Wisconsin Debt Collection Laws

Wells Fargo is facing a new FDCPA (Fair Debt Collection Practices Act) lawsuit, which was recently filed by a woman alleging the bank violated federal and Wisconsin debt collection laws.

Wisconsin debt collection laws state that debt collection agents cannot threaten legal action, acts of violence, or “enforce any right of knowledge or reason that does not exist.” The woman alleges the bank had knowingly violated federal and Wisconsin debt collection laws when trying to collect on an alleged consumer debt.

According to the FDCPA lawsuit, Wells Fargo tried to contact plaintiff Alice F. regarding an alleged debt. This debt was reportedly incurred when Alice purchased a vehicle for the amount of $25,000 that Wells Fargo financed.

Overview of FDCPA Lawsuit

However at some point in 2018, Alice fell behind on her payments and soon experienced alleged debt collection practices that violated Wisconsin debt collection laws.

According to the FDCPA lawsuit, Wells Fargo contracted the other defendant named in the claim, All Wheels Recovery (AWR), to repossess her vehicle. In April 2018, AWR went to Alice’s house to repossess her vehicle. However, she alleges this turned into a traumatic experience for her.

According to the FDCPA lawsuit, Alice her looked out her living room window, saw an AWR employee near her vehicle and then confronted the person. Even with her verbal protests, the AWR agent repossessed her vehicle and has not released the vehicle since.

Alice argues this alleged property possession is in clear violation of Wisconsin debt collection laws, which prohibits creditors from repossessing collateral goods like vehicles without first obtaining a court order unless the consumer voluntarily surrenders the property.

This provision was added to Wisconsin debt collection laws in April 2006 to help consumers protect their vehicle from unfair repossession from debt collectors. In addition to allegedly violating Wisconsin debt collection laws, Alice argues Wells Fargo has also violated the FDCPA.

Federal debt collection regulations state that debt collectors and agencies must adhere to a strict set of rules when contacting consumers to collect debts, including the prohibition of using harassment and other abusive language. The FDCPA was established in 1978 by Congress to protect consumers against aggressive debt collectors.

While the act of debt collecting is legal, debt collectors cannot resort to using deceptive and unreasonably manipulative tactics to intimidate consumers into paying debts.

The FDCPA states the debt collectors cannot try to collect on expired or delinquent debts and must be able to confirm the validity of the debt if the consumer disputes. Overall, the FDCPA does not allow debt collectors to use the following debt collection tactics:

• Sending confusing or ambiguous debt collection letters
• Communicating with third parties about the debt
• Threatening the consumer into paying the debt
• Harassing consumers into paying the debt
• Adding fees or collection charges to the debt
• Frequently calling or calling at inconvenient times
• Placing robocalls to consumers regarding the debt
• Trying to collect on expired or delinquent debts

Debt collectors found to be in violation of the FDCPA could face up to $1,000 per illegal debt collection method. Alice has been forced to resort to legal action, alleging Wells Fargo knowingly violated federal and Wisconsin debt collection laws.

This Wisconsin Debt Collection Laws Lawsuit is Case No. 3:18-cv-00472-jdp, in the U.S. District Court of Western Wisconsin.

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.