Portfolio Recovery Associates LLC Faces Allegations of New York FDCPA Violations

Portfolio Recovery Associates LLC is facing a new FDCPA lawsuit from a New York resident filing a proposed class action suit in federal court. The lawsuit alleges serious New York FDCPA violations, claiming the debt collector violated the Fair Debt Collection Practices Act (FDCPA) by using unfair and aggressive letters to collect on consumer debts.

The FDCPA lawsuit alleges debt collection company had violated the FDCPA by trying to collect a debt from Nicole Charleston who had reportedly incurred a credit card debt issued from Synchrony Bank. Portfolio Recovery Associates LLC had reportedly sent Charleston a debt collection letter, which stated the debt amount and the number of the statute’s requirements.

According to the FDCPA lawsuit, Charleston had fallen behind on her credit card and had her debt eventually assigned to Portfolio Recovery Associates for collection. The debt collector had reportedly sent her a letter in April 2016, which is the catalyst of Charleston’s alleged New York FDCPA violations.

Charleston is seeking class certification, claiming numerous other consumers have received similar letters.

“Defendant regularly engages in debt collection, using the same unlawful letter described herein, in its attempts to collect delinquent consumer debts from other persons,” the FDCPA lawsuit states.

Overview of New York FDCPA Violations

The debt collection letter reportedly required a disclosure explaining that unless Charleston disputed the validity of the debt within 30 days of receiving the notice, the debt collector with consider it valid.

Charleston alleges New York FDCPA violations in how the letter was presented, including the bold-faced notice at the bottom of the letter that had urged consumers to look at the information on the other side. On the other side, the company’s mailing address and email as the “Disputes Correspondence Address.”

While the letter did say the consumer could dispute the debt by writing or calling the company through the contact information on the letter, the letter’s language indicates the company requires the person to submit a written dispute, the lawsuit claims. This directly violates the FDCPA, as consumers can challenge a debt through different means including phone call or email, according to the complaint.

In addition, the letter also did not adequately explain the statute’s requirement that debt collector must clearly state the debt amount, the plaintiff claims. Charleston’s letter had presented a “Total Now Due,” but did not disclose whether or not the amount may increase due to late fees or any additional interest.

Charleston’s lawyer states that these New York FDCPA violations have been experienced by other consumers who paid the amount under the assumption that they were paying the total debt, only to be billed later for an additional amount. Furthermore, Charleston’s letter had listed “Non-Interest Charges/Fees or Balance Adjustments” as $0 but indicated that additional charges could be added in the future.

These alleged New York FDCPA violations had caused Charleston severe stress and emotional trauma, which eventually led her to file legal action against the company. Charleston is seeking all applicable damages and is seeking class action status to consolidate any similar FDCPA lawsuits against Portfolio Recovery Associates.

This New York FDCPA Lawsuit is Nicole Charleston v. Portfolio Recovery Associates LLC, Case No. 2:17-cv-02190, in the U.S. District Court for the Eastern District of New York.