New FDCPA Lawsuit Claims Deceptive Debt Collection Letter Practices

A New York woman has filed a lawsuit against the debt collection company Diversified Consultants, claiming its debt collection letter violated the FDCPA.

The plaintiff, Maren W., allegedly incurred a debt with Verizon, which was later transferred to Diversified Consultants for debt collection. She says she received a debt collection letter from the agency in June 2017 in an attempt to collect the debt. After receiving the debt collection letter, Maren contacted her attorneys, who notified the collection agency that Maren disputed the debt.

A new debt collection letter was then sent in November 2017 in a continued attempt to collect the debt. Maren claims that instead of sending the debt collection letter to her attorneys, as the agency had been informed it should do regarding this alleged debt, they instead sent the debt collection letter directly to Maren.

Maren chose to file a lawsuit against the agency, alleging that the company’s decision to send the new debt collection letter to her rather than her counsel caused “surprise, annoyance, confusion and upset that defendant would communicate with her directly.” According to the lawsuit, this constitutes a “deceptive and misleading means” to collect the debt, hoping she would disregard her legal counsel’s representation if the debt collection letter came to her instead.

Maren is not the first New York resident to report FDCPA violations by a debt collection agency like Diversified Consultants. Other debt collection agencies have been targeted in class action lawsuits over this kind of abusive and deceptive debt collection practice.

Background of the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a series of debt collection rules. The FDCPA was originally passed back in 1978 to protect consumers from unfair debt collection practices.

This law regulates a variety of practices, including times of day a debt collection agency can call an alleged debtor, whether or not a debtor can be contacted at work, and determining what constitutes the threatening or harassing of debtors.

Specific New York debt collection rules are more in-depth than those at the federal level. The New York debt collection law recently expanded on the federal laws, 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 agency such as Diversified Consultants has committed New York FDCPA violations such as sending a confusing debt collection letter, you may be able to file a FDCPA class action lawsuit and receive compensation for FDCPA violations of federal and/or state debt collection regulations.

The FDCPA Debt Collection Letter Lawsuit is Case No. 1:17-cv-06964, 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.