New York Man Files FDCPA Class Action Lawsuit for Debt Collection Violations

Diversified Consultants Inc. is facing a new FDCPA class action lawsuit from a New York man alleging the company violated state and federal privacy laws when trying to collect on an alleged debt.

The man is filing this FDCPA class action lawsuit on behalf of himself and other New York residents who may have received an unfair debt collection letter from Diversified Consultants.

Plaintiff Eli Hizami opted to file this FDCPA class action lawsuit soon after receiving an unwanted debt collection letter from Diversified Consultants, which was allegedly ambiguously worded and deliberately meant to confuse consumers.

Hizami reportedly received the unwanted debt collection letter on Sept. 15, 2017, due to an alleged consumer debt he incurred with Verizon Wireless. According to the FDCPA class action lawsuit, Hizami’s letter detailed his current debt along with other fees incurred.

The debt collection letter from Diversified Consultants contained the following:

• Current Balance: $489.59
• Total Debt Due As of Charge Off: $414.91
• Total Interest Accrued Since Charge Off: N/A
• Total Non-Interest Charges or Fees Since Charge Off: $74.68
• Total Payments Made On the Debt Since Charge Off: N/A

The letter allegedly failed to adequately explain the additional fees, or if the current balance was the final amount Hizami owed. The debt collection letter also failed to explain the other fees mentioned, or how they could be incurred or resolved, Hizami claims.

In addition, the debt collection letter allegedly failed to include any “safe harbor” language that instructed him on how to contest the debt or provide any validity of the debt. Overall, Hizami says, the debt collection letter was ambiguous on the amount actually owed to Verizon, or if the amount could increase over time.

Hizami alleges that the debt collection letter was specifically designed to intimidate and confuse him, and therefore other consumers, into making payment without giving them the ability to contest the validity of the debt.

Overview of FDCPA Violations

The Federal Debt Collection Practices Act (FDCPA) is a federal law passed by Congress in 1978 to help United States citizens combat aggressive debt collection tactics. While debt collection is generally legal, the FDCPA provides a strict set of rules for debt collectors to follow when conducting themselves with consumers.

The FDCPA prohibits companies from using abusive or threatening language when talking to consumers, or use of any techniques specifically designed to harass and intimidate consumers into paying the debt. In addition, the FDCPA guarantees consumers the right to contest debts and demand forms of validity to prove the debt is theirs and is not expired.

In addition to the FDCPA, New York is one of the most progressive states in regards to debt collection policies. In 2015, the New York governor implemented additional debt collection policies that stated debt collectors must inform consumers of the statute of limitations of the debt.

Hizami ultimately claims the debt collection letter directly violates the FDCPA and New York debt collection laws, due to the ambiguity of the alleged debt owed and how the debt letter was worded.

Hizami is filing this FDCPA class action lawsuit after discovering hundreds of other consumers had received similar debt collection letters, also ambiguously worded and designed to confuse consumers.  He is seeking multiple damages for FDCPA violations, with penalties up $1,000 per illegal debt collection letter.

This FDCPA Class Action Lawsuit is Case No. 1:18-cv-00017-ILG-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.