New Debt Collection Class Action Lawsuit Filed in U.S. District Court

A new debt collection class action lawsuit has been filed in U.S. District Court in New York. The complainant, plaintiff Polina K., filed her claim on Nov. 28, 2017.

She brings this claim on behalf of herself and others that have been allegedly harassed for debt collection purposes by named defendant FMA Alliance Ltd., in violation of the Fair Debt Collection Practices Act (FDCPA).

The plaintiff hopes to represent in this new debt collection class action lawsuit a Class of New York citizens who received a collection letter from the defendant attempting to resolve a debt allegedly owed to U.S. Bank National Association.

This defendant allegedly sent one of these letters to the plaintiff on or about July 12, 2017. The proposed class period is one year prior to the date of this filing, meaning that anyone sent this same form letter between Nov. 28, 2016 and Nov. 28, 2017 may be included in the proposed Class.

According to the legal documentation in the debt collection class action lawsuit, FMA Alliance allegedly violated the FDCPA by not advising recipients of the letter correctly.

In the form letter, the verbiage allegedly indicates that the debtor must dispute the debt in writing within 30 days of receipt. If not disputed in this manner, the letter indicates that the debtor can assume their records are valid and proceed accordingly, Polina claims.

Polina alleges this representation runs contrary to the terms of the FDCPA. Under federal law, collection letters must contain a statement that the consumer has 30 days to dispute, but “in writing” is not part of that requirement.

As claimed in the debt collection class action lawsuit, the language that was used by the defendant was very deceptive. At the end of the collection letter, FMA Alliance Ltd. indicated that “all payments and communications should be sent to the following address.” Polina argues that a reasonable evaluation of that choice of language would take that to mean that no dispute other than “in writing” would be valid.

The plaintiff is bringing counts against the defendants in this debt collection class action lawsuit for suggesting a dispute must be made in writing, and for false and misleading representation.

The plaintiff, on behalf of herself and that of the proposed Class, is seeking certification as a viable debt collection class action lawsuit from the court as well as certification of her status as class representative. She is seeking statutory and actual damages as part of this legal undertaking as well as a return of all incurred legal costs in the form of attorney and court fees.

What is the FDCPA?

The Fair Debt Collection Practices Act was passed by Congress in 1977 because of a multitude of evidence that consumers were being subject to a variety of abusive and harassing means in the pursuit of debt collection.

By giving citizens an avenue and means to legally pursue debt collectors that do not comply with civil means and methods, Congress hoped to assist those that do comply so that they would not be disadvantaged competitively.

The FDCPA Class Action Lawsuit is Case No.1:17-cv-06934 in U.S. District Court, Eastern District of New York.

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.