New York Debtor Files Class Action Lawsuit, Alleging Illegal FDCPA Letter

Security Credit Systems Inc. is facing a class action FDCPA lawsuit from a New York resident alleging they received an illegal FDCPA letter that violated federal and state debt collection laws.

The claimant is seeking to represent themselves and other New York residents who may have received a similar FDCPA letter, each alleging some kind of consumer debt.

Plaintiff Sharzil Rahman alleges the FDCPA letter failed to specify the basic factors about the debt, did not give any information regarding how to refute the debt nor did it give information about the statute of limitations.

Rahman alleges Security Credit Systems Inc. violated the FDCPA (Federal Debt Collection Practices Act) by sending an FDCPA letter failing to describe potential accrual of interest or late fees. According to the Class Action FDCPA lawsuit, Security Credit Systems Inc. sent the debt collection letter to Rahman in the spring of 2017 stating the debt was accruing at least through July 17, 2017.

The FDCPA letter allegedly failed to specify how the debt was increasing with interest or how those interest charges were accruing since the debt was incurred. The FDCPA letter also allegedly failed to explain how much Rahman owed or the amount needed to pay to resolve the debt.

In addition, Rahman alleges the FDCPA letter was also worded in a confusing manner and used complicated language deliberately meant to confuse and intimidate. Overall, Rahman alleges the FDCPA letter failed to comply with state and federal debt collection laws.

Overview of FDCPA Policy

The Fair Debt Collection Practices Act was enacted by Congress in 1978 to help consumers combat aggressive debt collecting methods used by companies. While debt collection in itself is perfectly legal, the FDCPA prevents debt collectors and debt collecting agencies from using harassment and other abusive tactics against consumers.

Under the FDCPA debt collectors must provide validity or proof of the debt, must provide complete and accurate details pertaining to the debt, and provide ways for consumers to combat the debt. Furthermore, the FCPA also prohibits companies from collecting expired debts.

Overall, the FDCPA prohibits the following tactics for debt collection:

• Sending confusing debt collection letters
• Communicating with third parties regarding the debt
• Making threats
• Harassment
• Adding fees and collection charges to the debt
• Calling throughout the day
• Making robocalls
• Trying to collect on expired debts
• Trying to collect on false debts
• Continuing to communicate to consumer despite being asked to stop
• Making improper reports to credit reporting agencies

In addition to the federal FDCPA policies, New York state has some of the most progressive consumer protection laws in the United States and has additional debt collection policies in place.

In early 2015, New York Governor Andrew Cuomo and the New York Department of Financial Services stated debt collectors must follow these new regulations while conducting themselves with customers.

Specifically, the laws required debt collectors to inform consumers if the statue of limitations and trying to collect on an expired debt. Companies that are found to be in violation of the FDCPA may be penalized for up to $1,000 per violation and any actual damages suffered.

Rahman is filing this class action FDCPA lawsuit on behalf of themselves and other New York residents, and is seeking damages for all FDCPA violations.

This Class Action FDCPA lawsuit is Sharzil Rahman v. Security Credit Systems Inc., Case No. 2:18-cv-01455, in the U.S. District Court of Eastern 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.