New York FDCPA Lawsuit Filed over Confusing Debt Collection Letter

A plaintiff alleges he received a vague debt collection letter from International Recovery Associates Inc. that violated state and federal privacy laws. The New York FDCPA lawsuit claims that the debt collection letter used confusing language and did not present any options for the claimant to challenge the debt.

Plaintiff Jonathan G. filed the New York FDCPA lawsuit against International Recovery Associates Inc., alleging the debt collection violated the Fair Debt Collection Practices Act (FDCPA) and federal privacy laws.

International Recovery Associates alleges Jonathan owes a debt and that the company was acting in its occupational duty in trying to collect on it. Even if the debt was valid, debt collectors cannot violate state and federal privacy laws when trying to collect on a debt.

According to the New York FDCPA lawsuit, International Recovery Associates had sent almost 14 identical debt collection letters all dated Oct. 10, 2016. The debt collection letter was the first form of contact Jonathan received from International Recovery Associates, stating that Jonathan was listed on “their office for collection.”

Overview of New York FDCPA Lawsuit

According to the New York FDCPA lawsuit, there were different account numbers on each debt collection letter and the letters claimed Jonathan owed different amounts of money:

• Four debt collection letters indicated Jonathan owed $48.20
• Three debt collection letters indicated he owed $361
• Three debt collection letters indicated he owed $157
• Two debt collection letters indicated he owed $167

The debt collection letters all name “John T. Mather Hospital” as the creditor, an organization with which Jonathan claims he has no open accounts. In addition, Jonathan argues there is no way to determine what the accounts represent or the nature of the alleged debt.

Jonathan ultimately alleges that the debt collection agency sent multiple debt collection letters to confuse and overwhelm him, in the hopes of him paying the debt. Jonathan is filing this New York FDCPA lawsuit, alleging International Recovery Associates used unfair and abusive debt collection tactics to collect on the alleged debt.

Jonathan filed this New York FDCPA lawsuit, alleging International Recovery Associates had violated state and federal privacy laws.

The FDCPA is a federal law that was passed by Congress in 1978, to combat unfair debt collection practices. While debt collection in itself is legal, the FDCPA makes debt collectors follow a specific set of rules when conducting their business practices. This includes prohibiting the use of abusive or threatening language, and sending debt collection letters meant to confuse and intimidate the consumer.

In addition, New York has some of the highest standards for consumer privacy and makes it illegal for debt collectors to persistently harass consumers. If a debt collector is found to be in violation, they could face up to $1,000 in statutory damages along with any actual damage suffered by the plaintiff.  Jonathan is filing this New York FDCPA lawsuit, seeking compensation for all damages suffered and pleaded emotional distress.

This Debt Collection Letter Lawsuit is Case No. 2:17-cv-05929-DRH-SIL, in the U.S. District Court for the Eastern District of New York.

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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.