New York Debt Collection Lawsuit Alleges Letter Was Deceptive

A New York resident recently filed a debt collection lawsuit against Enhanced Recovery, alleging that the debt collection company engaged in unfair and deceitful practices that violated the FDCPA.

According to the plaintiff, Sara B., Enhanced Recovery contacted her through a collection letter on Feb. 2, 2017. The letter stated in part that it was a “notification that your delinquent account may be reported to the national credit bureaus.”

However, according to Sara’s debt collection lawsuit, the letter fails to note that she was still able to dispute the debt, instead implying a sense of urgency that might encourage a consumer to react without considering the option to dispute the debt.

The lawsuit notes that the least sophisticated consumer would be “left in the dark as to whether or not he or she still had the right to dispute the debt within the thirty-day validation time period.”

The debt collection lawsuit alleges that the letter contained “false, deceptive, misleading representations and means in its attempted collection of Plaintiff’s alleged debt.”

Sara filed her debt collection lawsuit on Feb. 2, 2018.

Basics of the FDCPA

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations that has been around for several decades, first established in 1978. Though the rules have been updated since then, the FDCPA continues to help protect consumers from debt collection agencies that may try to take advantage of them.

Debt collectors have a reputation as being intimidating, unfair, or even aggressive. While this may not always be the case, some may use their positions to abuse or harass debtors. The FDCPA was introduced as a way of helping to cut down on abusive debt collection practices.

While there are federal FDCPA rules, there are also a set of rules in New York that expanded on these regulations in 2015 in an effort to make regulations more friendly and favorable to the debtor. Updated New York debt collection regulations ban such unfair, abusive, or harassing practices as:

• Sending confusing debt collection letters
• Making threats
• Communicating with third parties about the debt
• Making robocalls
• Being unclear about the debt
• Calling too often, at work, or at inconvenient times
• Adding fees and charges

According to the rules set forth by the FDCPA and New York regulations specifically, debt collection agencies have a duty to consumers to be extremely clear in their letters. A good way to think of this, in legal terms, is by referencing the “least sophisticated consumer.” Many FDCPA lawsuits allege that the “least sophisticated consumer” would be misled or confused by.

Filing a Lawsuit Over Unfair Debt Collection Practices

If you live in New York and have been affected by unfair, harassing, or abusive practices from a debt collection agency, you may be able to pursue litigation.

The New York Debt Collection Lawsuit is Case No. 1:18-cv-00736-ARR-PK, 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.