Proposed Class Action Lawsuit Alleges New York Deceptive Collection Practices

A woman has filed a proposed class action lawsuit in New York federal court alleging that Berks Credit & Collections, Inc. violated the Fair Debt Collection Practices Act, or FDCPA.

Plaintiff Elisha Pickney has filed this FDCPA lawsuit on behalf of herself and a proposed Class saying that Berks Credit & Collections engaged in abusive, deceptive and unfair acts and New York deceptive collection practices. She has brought forth this action under the New York General Business Law.

Pickney says she owed a debt that was originally incurred for personal, family or household purposes and was held by the Eye Care and Surgery Center, according to the New York deceptive collection practices lawsuit. Pickney states that she was sent a letter from Berks that was dated May 20, 2016. Her account with the High Care and Surgery Center was alleged to be in default, and this was the first letter that Pickney claims she received.

The letter did not properly identify who held the debt, the plaintiff said, as the letter stated in its caption “RE: THE EYE CARE AND SURGERY CENTE” and stated “Please be advised that your collection account has been placed with Berks Credit & Collections for collection.” The letter also stated “All returned checks are subject to a minimum charge of $25.00.”

Pickney stated that since she did not know who the creditor of the debt was she felt “confused and annoyed” and she also “felt, erroneously, that defendant could lawfully charge her minimum of $25.00 for returned check.” Additionally, Elisha states she “did not know whether there was a maximum amount above which defendant could not charge for returned check or whether defendant could charge her an unlimited amount.”

The plaintiff has brought forth a number of counts against the company including failure to identify the creditor clearly and effectively, improper statement that returned checks are subject to a minimum charge of $25, and violation of New York General Business Law.

The New York deceptive collection practices lawsuit proposes two classes. Class A consists of individuals who received debt collection letters within a year of the filing of the complaint, and Class B consists of all the individuals who received a collection letters within a year of the filing of the complaint which specifically contained the statement that “All returned checks are subject to a minimum charge of $25.00”

According to New York deceptive collection practices lawsuit, “As a result of the above relations, defendant is liable to plaintiff and the members of each as for injunctive relief and damages in an amount to be determined at the time of trial, plus costs and attorneys’ fees.”

The plaintiff is seeking maximum statutory damages, actual damages, attorneys’ fees and costs, an injunction halting the allegedly unlawful New York deceptive collection practices surrounding debt collection and any additional relief as deemed just and proper by the Court.

The New York Deceptive Collection Practices Lawsuit is Elisha Pickney et al v. Berks Credit & Collections, Inc., Case No. 1:17-cv-02456-RRM-RML, in the U.S. District Court for the Eastern District of New York.

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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.