N.Y. Debtor Sues over FDCPA Demand Letter

A man filed a lawsuit against The Bureaus, Inc., a debt collector based out of Illinois that collects debts in New York. The lawsuit alleges that the company violated the Fair Debt Collection Practices Act.

Plaintiff Joseph S. states that the debt collection company began trying to collect on an alleged consumer debt of his from a Saks Fifth Avenue credit card that he used for personal, family and household items.

Joseph contacted The Bureaus directly in November 2016 and asked to receive an explanation of balance due. In response to Joseph’s inquiry about the balance, the debt collection agency responded to Joseph by providing him bills showing a high balance of $1836.76. Additionally, a FDCPA demand letter was attached to the bills stating that Joseph’s current balance due was $2236.67. No explanation was given as to the differing amounts in the bills and the FDCPA demand letter.

“Despite providing an invalid validation to the Plaintiff, the Defendant continued to collect the entire balance,” the lawsuit states. Additionally, the debt collection company re-reported Joseph’s entire balance of $2236.67 to the credit bureaus “despite being unable to verify the amount causing further harm to the Plaintiff’s credit score.”

As a result, Joseph “is entitled to dispute, part or all of debt, and in order to continue collection of the debt the defendant must provide validation for the entire amount, or the collector can only continue to collect the amount it has been able to verify,” the FDCPA demand letter lawsuit states.

Joseph has alleged that The Bureaus has violated the FDCPA. He is seeking actual damages, statutory damages, attorney fees and costs, a declaration that The Bureaus practices were in violation of the FDCPA and is seeking any additional relief including costs, expenses and disbursements of the action as the Court deems just and proper.

The New York FDCPA Demand Letter Lawsuit is Case No. 1:17-cv-05450-RRM-RER, in the U.S. District Court for the Eastern District of New York.

FDCPA Violations in New York

New York residents may be targets of unfair debt collection practices despite federal legislation of the FDCPA and state legislation designed to protect consumers from unfair practices. Yet New York residents continue to deal with companies who choose not to abide by the guidelines of fair debt collection practices.

Companies have been accused of sending confusing letters adding additional fees onto the debt such as collection charges, threatening or harassing debtors, communicating with third parties, such as family members or employers about debt, placing phone calls at inconvenient times or at an excessive rate and more.

If you are a New York resident and the company has attempted to unfairly collect a debt from you, you may be eligible to take legal action. An attorney experienced with FDCPA and New York State consumer protection laws can review your unique case in a free, no obligation case consultation to help you decide if taking further legal action is right for you.

Join a Free New York Unfair Debt Collection Class Action Lawsuit Investigation

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.