Unfair Debt Collection Lawsuit Filed by New York Man

Midland Credit Management is facing a class action unfair debt collection lawsuit from a New York man alleging he received an ambiguously worded debt collection letter from the company.

According to the class action unfair debt collection lawsuit, the claimant is seeking to represent himself and other New York consumers who received these allegedly intimidating and confusing letters from Midland.

Plaintiff Luis Colontorres is filing this class action unfair debt collection lawsuit on behalf of himself and other consumers who received similar letters, which were allegedly designed to confuse and intimidate.

According to the class action unfair debt collection lawsuit, Colontorres received the unwanted debt collection letter from Midland after incurring a personal consumer debt with GE Capital Retail Bank. The debt collection letter stated Colontorres had a balance of $630.85 for a GE Capital Retail Bank credit card, and offered three options to pay the debt.

According to the letter, Colontorres had the option of either paying the amount in full for a 40% discount, in six month installment payments for 20% discount, or simply paying the debt off in monthly $50 increments. The debt collection letter stated the “offer” will expire on Sept. 2, 2016, and that “after receiving your final payment, we will consider the account paid.”

In addition, the bottom of the letter stated “if you pay your full balance, we will report your account as paid in full. If you pay less than your full balance, we will report your account as paid in full for less than the full balance”

Colontorres says nowhere in the debt collection letter did it sufficiently explain the debt, the discounts it offered, or what would happen after the expiration date. In addition, the debt collection letter offered no validity or disclosures of whether or not the debt was expired or provide any means of contesting the debt.

Each of these violates both New York state debt collection laws and the Fair Debt Collection Practices Act (FDCPA), Colontorres claims.

Overview of Federal and New York State Debt Collection Policies

The FDCPA was established by Congress in the late 1970s, providing a strict set of rules for debt collection companies to follow when treating customers. These rules primarily focus on prohibiting the use of abusive or threatening tactics, intimidation, and harassment.

This can include dialing the consumer’s phone number numerous times for the specific purpose of trying to collect on a debt. Under the FDCPA, collection companies are also prohibited from sending debt collection letters designed to confuse and intimidate the consumer.

This can include the use of confusing language or failing to provide enough specifications on the alleged debt, like incurring interest. In addition, debt collection letters must provide proof or validity that the debt belongs to the consumer and provide ways for the consumer to contest the debt.

In addition to the FDCPA, New York has some of the strictest debt collection laws in the country with new policies enacted in 2015. During this time, New York Governor Andrew Cuomo had introduced new debt collection rules including statute of limitations disclosures, general collection and amount specific disclosures, debt validation, and using email to contact consumers about the alleged debt.

Colontorres says the debt collection letter he received was written to confuse and intimidate. He is seeking to represent all New York consumers who received a similar debt collection letter from GE Retail Bank.

This class action Unfair Debt Collection Lawsuit is Luis Colontorres v. Midland Credit Management, Case No. 5:18-cv-00035-FJS-TWD, in the U.S. District Court for the Northern 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.