Unfair Debt Collection Lawsuit Alleges Violation of FDCPA

An Illinois woman has filed a lawsuit against a collection agency, accusing the company of violating the Fair Debt Collection Practices Act (FDCPA).

On July 17, 2014, Nakeshia Glispie received a dunning letter – a notification that an account is overdue – stating that she owed Quest Diagnostics a debt of $157.55 and that if she failed to pay the money owed by Aug. 26, it would be reported to a consumer reporting agency and her credit could be negatively impacted, according to Glispie’s unfair debt collection lawsuit.

Glispie maintains that she had health insurance coverage at the time the debt was incurred and that her insurance carrier was responsible for the debt. Concerned about her credit rating, Glispie checked her credit report and found the debt had been reported to the credit reporting agencies on July 14, three days before she received the notice.

She filed an unfair debt collection practices lawsuit against Massachusetts-based Credit Collection Services for alleged deceptive practices, accusing the company of furnishing false information in an effort to coerce her into paying the debt. Further, according to her lawsuit, Credit Collection Services is not licensed to collect debts in the state of Illinois.

“(Credit Collection Services’) conduct has caused anxiety, stress and worry to Plaintiff,” according to the unfair debt collection lawsuit.

Passed by Congress in 1977, the FDCPA was intended to establish legal protection from abusive debt collection practices.

The law prohibits debt collectors from engaging in a variety of tactics, including harassment, which is involves abusive language, threats or continuing to contact the consumer after the consumer has notified the collector they do not wish to be contacted.

Debt collectors may not collect debts not owed by the debtor, such as debts discharged in bankruptcy or previously settled by the debtor. The law also prohibits improper reporting to credit agencies. The types of debts that may be reported to credit agencies are clearly defined yet many companies report unqualified debt even if they have no right to collect on it.

It is a violation of the FDCPA for debt collectors to fail to notify the credit reporting agencies when a debtor has already disputed a debt.

Telephone harassment is also unlawful. Collectors may only call between the hours of 8 a.m. and 9 p.m. and cannot do so in harassing manner.

Debt collectors cannot make false statements or engage in deceptive practices, such as attempting to collect debts that have expired or are not owed (such as those discharged in bankruptcy or debts previously settled). They may not make improper reports to credit reporting agencies or contact third parties, such as family members or employers, in an effort to collect the debt.

If a debt collector is found in violation of the FDCPA, the debtor is entitled to receive $1,000 in statutory damages, plus any actual damages that they have suffered.

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If 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.