Nissan Debt Collection Department Target of Class Action Investigation

Nissan Debt Collection Department Target of Class Action Investigation

By Amanda Antell

Nissan Motors Acceptance Corporation (NMAC) is being investigated for unlawful telephone debt collection actions. NMAC is part of the auto giant Nissan, and serves as their auto loan finance division. Numerous consumers have complained that NMAC aggressively pressured them into making payments over the phone, and have possibly violated the Fair Debt Collection Practices Act.

The Fair Debt Collection Practices Act (FDCPA) was made to protect consumers from abusive and harassing debt collection practices from companies. This act covers personal, family and household debts, which includes personal auto loans. Recently, numerous auto loan companies have come under fire for violating the law by using abusive, unfair or deceptive practices in their debt collection practices.

The FDCPA prohibits specific conduct when attempting to collect debts, including:

• Failure to cease communication upon request: communicating with consumers in any way (other than litigation) after receiving written notice which stated the consumer wished to cease contact.
• Intent to annoy, abuse, or harass the individual in debt.
• Contacting the individuals at their place of employment, after having been advised that this is unacceptable or prohibited by the employer.
• Communicating with consumer before presenting proof of requested validation.
• Misrepresenting the debt or using deception to collect the debt, which includes the debt collector possibly posing as an attorney or law enforcement officer.
• Publishing the consumer’s name or address on a “bad debt” list.
• Seeking unjustified amounts not included in the debt, or adding any unauthorized fees.
• Threatening unauthorized arrest or legal action.
• Abusive or profane language use in any time of the course of communication related to the debt.
• Communicating with third parties revealing or discussing the nature of the customer’s debts.
• Contacting the consumer by embarrassing media, such as communicating with a consumer regarding a debt by post card, or using any specified language or symbol, other than the debt collection company’s own address or symbol.
• Reporting false information on a consumer’s credit report to other companies, or threatening to do so if the debt is not paid.

Under the FDCPA, each violation can go up to $1,000 in statutory damages, which potentially include the plaintiff’s attorney fees. However, the collector may only escape penalty if the company shows proof of unintentional conduct as the result of a “bona fide error” that occurred in the system, despite having procedures to prevent this very complication.

The FDCPA requires debt collectors to do the following when communicating with consumer individuals:

• Identify themselves and notify the consumer
• Give the name and address of the original creditor
• Notify the consumer of their right to dispute the debt
• Provide verification of the debt
• File a lawsuit in a proper venue

Nissan is being investigated for violating these rules, and many consumers are taking it upon themselves to protect themselves.

If you believe that you or a loved one has been the victim of a Nissan debt collection violation, you have legal options. Please visit the Nissan Auto Loan Debt Collection Class Action Lawsuit Investigation. There, you can submit your claim for a free legal review and if it qualifies for legal action, a seasoned FDCPA lawyer will contact you for a free, no-obligation consultation. You will be guided through the litigation process at no out-of-pocket expenses or hidden fees. The debt collector attorneys working this investigation do not get paid until you do.

Updated July 1st, 2013

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