Illinois Man Alleges Debt Collection Letter Violated FDCPA

A man from Illinois recently filed a lawsuit alleging major state and federal debt collection violations, stating he had received an illegal debt collection letter from Certified Services Inc.

Plaintiff Kenneth B. claims the debt collection letter allegedly displayed an incorrect amount on the debt and stated that his debt would be reported to credit reporting agencies if he did not pay it.

Kenneth states that this debt collection letter not only violates the Fair Debt Collection Practices Act (FDCPA) but also Illinois state laws pertaining to debt collection.

As a registered debt collection business operating in Illinois, Certified Services is subject to the state’s additional policies and restrictions of debt collecting including providing accurate information to the consumer, the lawsuit argues.

According to the FDCPA lawsuit, Kenneth received multiple debt collection letters stating he owed a debt much higher than what he actually owed. He also claims the different letters showed inconsistent debt amounts. He says that one debt collection letter dated March 15, 2018, stated he owed $967.05, while another one dated April 2, 2018 stated he owed $980.94.

With each debt collection letter, Kenneth claims, his alleged debt kept increasing, with the final one dated May 30, 2018, in the amount of $1,305.47. According to the FDCPA lawsuit, the last amount is over $300 higher than what Kenneth actually owed to the original creditor.

In addition to the incorrect debt amount amounts, Kenneth claims that at least one of the debt collection letters stated that “information regarding the account(s) may be furnished to credit reporting agencies. Consumers have the right to inspect their credit.”

However, the FDCPA lawsuit stated that by early July 2018, Certified Services had not reported this debt to either TransUnion or Equifax.

Overview of FDCPA Debt Collection Policies

Both the FDCPA and Illinois debt collection laws state that consumers have the right to combat illegal debt collection actions, such as false or intimidating statements in a debt collection letter. The FDCPA was enacted by Congress in 1978 to help consumers defend themselves against aggressive debt collectors, who were allegedly using unfair and intimidating tactics to collect.

While the act of debt collection is generally legal, the FDCPA prohibits companies from acting in a deceitful and intimidating manner that pressures consumers into paying debts.

In addition, the FDCPA requires companies to be transparent regarding the debt, including the amount that is actually owed and what the debt incurred from.

Collectors are restricted from sending a debt collection letter that contains inaccurate information regarding the debt and from threatening to take actions they can’t legally do. Overall, the FDCPA prohibits debt collection companies from doing the following:

• Sending confusing or intimidating debt collection letters
• Communicating with third parties about the consumer’s debt
• Using threats or other intimidating language
• Adding fees and collection charges to the debt
• Making numerous unwanted phone calls
• Collecting on expired debts
• Trying to collect a nonexistent debt

In addition to the FDCPA, some states like Illinois have additional restrictions on debt collectors to help protect their citizens. For example, Illinois law requires debt collectors to send validation of the debt within five days of initial communication and allows consumers to send a written demand for the communications to stop.

Kenneth alleges that Certified Services failed to do any of this, and he is suing for all damages related to the FDCPA and Illinois state law.

This Debt Collection Letter Lawsuit is Case No. 3:18-cv-00703-wmc, in the United States District Court of the Western District Court of Wisconsin.

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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.