Plaintiff Alleges Capital Management’s Debt Collection Letter Violates FDCPA Rules

A New York man recently filed a new lawsuit against Capital Management Services, alleging a debt collection letter the company sent in 2016 violated the rules of the FDCPA.

The plaintiff, Jacob L., says he received a debt collection letter from Capital Management Services in November 2016, which was trying to collect an alleged debt.

However, Jacob claims, the debt collection letter itself was extremely confusing, and not written in a way for the “least sophisticated consumer” to understand. Indeed, the lawsuit claims, the debt collection letter is “open to more than one reasonable interpretation,” and therefore it remained unclear to the plaintiff himself what the actual amount of the debt was.

It has previously been ruled by the Second Circuit with regard to debt collection letter practices that a collection notice should state both the current balance and all relevant information about the possibility of the balance increasing due to interest or fees.

Under FDCPA guidelines, debt collection agencies like Capital management Services have a responsibility to consumers to make their meaning clear, communicating the amount of debt to the “least sophisticated consumer.”

In this case, however, Jacob claims that the least sophisticated consumer is likely to be confused about the amount of debt and how to satisfy that debt, as explained by the debt collection letter he received.

Jacob is far from the first New York resident to report FDCPA violations by a debt collection agency. Other debt collection agencies have been targeted in class action lawsuits over this kind of abusive and deceptive debt collection practice.

Background of the Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection rules originally passed in 1978. The FDCPA is meant to protect consumers like Jacob from debt collection harassment and unfair practices.

The FDCPA has a number of provisions that cover a variety of topics, including when a debt collection agency can call an alleged debtor, whether or not an agency can call an alleged debtor at work, and the threatening or harassing of debtors.

Specific New York FDCPA rules are more in depth than those at the federal level. The New York FDCPA expands on the federal laws, which is actually a recent change.

The state’s debt collection regulations were amended in 2015. These updated New York debt collection rules ban debt collectors from engaging in the following practices:

• Sending a confusing debt collection letter
• Communicating with third parties about an alleged debt
• Making threats
• Harassment
• Adding fees or collection charges to the debt
• Calling too often
• Calling at inconvenient times of day
• Calling at work if the consumer objects
• Collecting on old debts
• Making robocalls

Filing a New York FDCPA Lawsuit

If you live in New York and a debt collector agency such as Capital Management Services has committed New York FDCPA violations such as sending a confusing debt collection letter, you may be able to file a FDCPA class action lawsuit and gain compensation owed for FDCPA violations of federal and/or state debt collection regulations.

The FDCPA Debt Collection Letter Lawsuit is Case No. 1:17-cv-06680-DLI-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.