New York Woman’s Debt Collection Lawsuit Alleges Violations of State and Federal Law

Dynamic Recovery Solutions LLC and LVNW Funding are facing a class action debt collection lawsuit, for allegedly violating New York state and federal debt collection laws.

This class action debt collection lawsuit is being led by a New York woman, alleging the company had used illegal debt collection practices to try and intimidate her and other consumers.

Plaintiff Sung Oh opted to file this debt collection lawsuit after Dynamic Recovery Solutions LLC and LVNW Funding had sent an allegedly illegal debt collection letter to her and other consumers. The plaintiff alleges the companies used confusing and intimidating language to prompt payment in the letters.

Oh says the debt collection letter was sent to her on Nov. 17, 2017, which was the first form of communication from the debt collection companies. According to the class action debt collection lawsuit, the debt in question was incurred from typical household expenses, but Oh had fallen behind on payments at some point.

Eventually the debt was transferred to Dynamic Recovery, says the complaint, who then sent the unwanted debt collection letter. The debt collection letter stated the “current balance” of the debt was $2,283.85, and that an “interest accrued since charge off” of $872.48 was being assessed.

The debt collection letter allegedly failed to describe the interest charge, or if the additional amount was due to increase at any point. Oh alleges this debt collection letter was deliberately worded in a way that would be confusing for a typical consumer, featuring highly technical and confusing language.

In addition, the debt collection letter had also failed to fully explain the debt or any additional fees that may be attached, along with any potential for accrual. Each of these points are violations against state and federal debt collection laws, alleges the class action debt collection lawsuit.

The plaintiff is seeking damages against Dynamic Recovery.

Overview of Debt Collection Policies

New York is one of the most progressive states in the country regarding debt collection laws, with new consumer protection policies implemented in early 2015. The focus of the new regulations are the statute of limitation disclosures, general collection and account disclosure, debt validation, and using email to communicate regarding the debt.

These state laws essentially prohibit debt collector from collecting on an expired debt. In addition to the state’s debt collection laws, debt collection companies are required to follow the federal Fair Debt Collection Practices Act (FDCPA).

The FDCPA was passed by Congress in 1978 to help consumers combat aggressive debt collectors, preventing debt collectors from using harassment, abusive language, and other pushy tactics to collect on debts. The FDCPA also requires debt collectors to provide proof or validity of the debt, and also enables consumers to contest the charges.

According to the debt collection lawsuit, Dynamic Recovery Solutions LLC and LVNV Funding LLC allegedly failed to do this with Oh and other New York consumers. Oh is filing this claim on behalf of herself and other New York residents who received similar debt collection letters, and is seeking up to $1,000 per debt collection violation.

This Class Action Debt Collection Lawsuit is Sung Oh v. Dynamic Recovery Solutions, LLC and LVNV Funding, LLC, Case No. 1:18-cv-01664-ERK-SMG, in the U.S. District Court of Eastern New York.