Indiana Man Says Collector Can’t Ignore Debt Dispute Letter

An Indiana resident recently filed a lawsuit against a debt collection agency, alleging the agency violated the FDCPA in its communication by failing to acknowledge the existence of a debt dispute letter in its credit reports.

The plaintiff, Ronald H., says he was contacted by an Indiana debt collection agency, Midland Funding, LLC, which was attempting to collect a debt. Ronald had allegedly incurred a debt, which had gone into default and was then transferred to Midland Funding for collection.

Midland contacted Ronald to collect the alleged debt. Robert says he disputed the debt, requested that the collection agency stop contacting him or communicating about the debt, and retained counsel to help with the matter. His counsel sent a debt dispute letter to Midland on Feb. 22, 2018 via fax, which was received, Robert claims.

Despite the debt dispute letter, the lawsuit claims, Ronald found through his credit report that Midland had continued to report on his debt (a form of communication) without indicating that the debt was actually disputed. According to the debt dispute letter lawsuit, this communication was in “clear violation” of FDCPA law.

Ronald filed his debt dispute letter lawsuit on May 18, 2018 in the U.S. District Court for the Southern District of Indiana for violation of the FDCPA.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations meant to help protect consumers from being taken advantage of, harassed, or threatened by a debt collection agency. The FDCPA was first enacted by Congress in 1978.

In today’s climate, collection agencies have become more and more aggressive, and many of these companies may work for major banks, credit card companies, and student loan companies, as well as debt buyers.

In some cases, the companies may use illegal debt collection practices to collect on what’s owed them—or even an invalid debt. Indeed, millions of Americans may have been targeted with illegal and abusive debt collection practices, but most are not armed with the information necessary to know there are laws in place protecting them from such abuses.

Laws at both the federal and state level protect Americans from abusive debt collection practices. Debt collectors are not allowed to send confusing collection letters, make threats, harass, add fees, make robo-calls, or communicate with third parties about a debt, among others.

Under the FDCPA, if a debt collector is found to have violated these regulations, the consumer may be entitled to statutory damages of $1,000, plus any actual or emotional damages.

Filing an FDCPA Lawsuit Over Invalid Debt

Residents of Indiana, Illinois and Wisconsin who were subject to improper debt collection practices may qualify to participate in a free FDCPA lawsuit investigation. If you have suffered from abusive debt collection practices like confusing letters, harassment, or others, you may be able to file an FDCPA lawsuit.

The FDCPA Debt Dispute Letter Lawsuit is Case No. 1:18-cv-01533-WTL-DML, in the U.S. District Court for the Indianapolis Division of the Southern District of Indiana.

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.