New York Woman Sues over Debt Collection Letter

A New York woman has filed a proposed class-action lawsuit against a debt collection company claiming the company sent her an illegal debt collection letter. She believes that the company has sent similar letters to others and because of this, is proposing her lawsuit be considered for class action status.

Plaintiff Christine H. received a debt collection letter from ARStrat, LLC. According to this debt collection letter lawsuit, the letter Christine received said that it was a “second notice.” This debt collection letter allegedly stated, “We sent you a first notice which included your rights under the
Fair Debt Collections Practices Act.”

Under the law regarding debt collection, the debt collector has five days after the initial debt communication to send the debtor a communication detailing their rights under the law. However, Christine claims she did not receive any such letter.

Additionally, the debt collection letter allegedly stated that she still had time to “exercise her rights.” Christine alleges this letter was confusing. She asserts she never received the “first” notice from the debt collection agency.

Christine is attempting to bring this debt collection letter lawsuit to class action status as she believes that there are many others who have received similar debt collection letters claiming to be the “second letter.”

This proposed Debt Collection Letter Class Action Lawsuit is Case No. 2:18-cv-01247-JFB-AKT in the United States District Court in the Eastern District of New York.

New York Debt Collection

New York has very strict laws when it comes to debt collection and the regulations surrounding how a business can send a debt collection letter. In 2015, these new regulations came into practice.

Under these debt collection regulations, debt collection agencies may not threaten or harass individuals. Additionally, they must let debtors know if the debt’s statute of limitations has expired and debt collectors may not use any deceitful or misleading practices.

Other areas of concern under these new New York debt collection regulations include using email to communicate with debtors about a debt, disclosing statutes of limitation, general collection, and account specific disclosures and debt validation requirements.

The Fair Debt Collection Practices Act (FDCPA) is a 1978 federal law that regulates how debt collectors collect debts. It is legal for debt collectors to collect debts owed, but the FDCPA was designed to ensure that citizens are treated fairly during this process.

Under the FDCPA, there are rules for how debts can be collected and allows for those who owe debts to challenge creditors to determine how much is actually owed and the validity of debts owed.

If a debt collector has violated the FDCPA in any way, the debtor may stand to gain $1,000 for statutory damages in addition to any other damages including emotional distress.

There are certain things that are illegal under the FDCPA. Debt collection agencies may not harass debtors. If a debtor has informed a collection agency in writing not to communicate with them any longer, a debt collector may no longer contact them. Sometimes, though, they still do this. Also, debt collectors are not allowed to use abusive language or call family members or employers about the debt.

Under the FDCPA, telephone calls to collect debts are not able to be made early in the morning or late at night, and robo-calls (automated calls) may not be made.

There are also regulations about false statements, deceptive practices, the collection of old debts or debts not owed, and making improper reports to credit reporting agencies.

If you believe your rights have been violated under the FDCPA because of a debt collection letter, you may be able to file a debt collection letter lawsuit.