New FDCPA Lawsuit Alleges Unfair Debt Collection Practices

Two New York residents have filed a new FDCPA lawsuit against a debt collector, alleging that letters the company sent violated FDCPA rules.

The plaintiffs who filed the FDCPA lawsuit are Helene N. and Anthony A., who state that the debt collector Carson Smithfield sent letters to both Helene and Anthony in an attempt to collect alleged debts owed.

However, the plaintiffs claim, these letters violated the rules set forth in the Fair Debt Collection Practices Act (FDCPA).

Among other problems, the FDCPA lawsuit notes, these letters stated “Balance Due” amounts but failed to indicate that these balance amounts may increase due to interest, late fees, or other fees. The plaintiffs say these letters failed to provide information that the “least sophisticated consumer” would understand to determine the actual amount of interest owed.

Under FDCPA guidelines, debt collectors like Carson Smithfield have a legal responsibility to consumers to be extremely clear in their letters, communicating the amount of debt efficiently to the “least sophisticated consumer.” In this case, however, the plaintiffs claim that the least sophisticated consumer would likely be confused about the amount of debt owed and how to satisfy that debt based on the information provided in these letters.

Helene and Anthony are not the first New York residents to file a FDCPA lawsuit over problems with a debt collector. Other collection agencies have been targeted in class action lawsuits over their debt collection practices.

Background of the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act is a set of debt collection rules first passed back in 1978. The FDCPA is meant to protect consumers from debt collection harassment and unfair practices. The FDCPA has a number of regulations that cover a variety of topics, including when a debt collection agency can call an alleged debtor, whether or not an agency can call an alleged debtor at work, and the threatening or harassing of debtors.

Specific New York FDCPA rules are more in depth than those at the federal level. The New York FDCPA expands on the federal laws, which is actually a rather recent change. The state’s debt collection regulations were updated in 2015. These updated New York debt collection rules ban debt collectors from engaging in the following practices:

• Sending a confusing debt collection letter
• Communicating with third parties about an alleged debt
• Making threats
• Harassment
• Adding fees or collection charges to the debt
• Calling too often
• Calling at inconvenient times of day
• Calling at work if the consumer objects
• Collecting on old debts
• Making robocalls

Filing a New York FDCPA Lawsuit

If you live in New York and a debt collector like Carson Smithfield LLC has violated the FDCPA in its attempt to collect a debt, such as by sending a confusing debt collection letter, you may be able to file a FDCPA lawsuit. A lawsuit may help you gain compensation owed for FDCPA violations of federal and/or state debt collection regulations.

The FDCPA Lawsuit is Case No. 2:17-cv-06908-ADS-AYS, in the U.S. District Court for the 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.