An unlawful debt collection class action lawsuit has been filed against Financial Recovery Services Inc., which allegedly violated the Fair Debt Collection Practices Act (FDCPA).
Plaintiff Luz M. says she incurred debt with a Citibank credit card. At some point prior to Nov. 16, 2017, the Citibank obligation was sold to Cavalry. At the time Cavalry obtained the obligation, it was in default for $2,222.67.
Cavalry then turned the Citibank obligation over to Financial Recovery Services Inc. for collections on or before Nov. 16, 2017 as well. Financial Recovery Services then sent Luz a letter demanding payment.
Although Citibank stopped adding interest or other charges to the balance of the obligation prior to the date of the letter, the letter presented the balance as if it could change, Luz claims. The balance was not going to change, and to insinuate the balance could change was a violation of the FDCPA, says the unlawful debt collection class action lawsuit.
According to the unlawful debt collection class action lawsuit, “Financial Recovery did not provide any information regarding the rate of interest, the nature of the other charges, how any such charges would be calculated or what portion of the balance due, if any, reflects already accrued interest, late charges or other charges.”
A collection letter also violates FDCPA if “the least sophisticated consumer” could become confused by the wording of the letter, according to Luz’s complaint.
The unlawful debt collection class action lawsuit alleges Luz’s letter could lead “the least sophisticated consumer” to believe the amount due could increase over time because of interest or other charges accruing. Luz also faults “the form, layout and content” because the consumer’s rights are easily confused.
The FDCPA is a federal law enacted in 1978 to keep unscrupulous debt collectors from harassing consumers. Debtors have the right to challenge the validity and accuracy of debts. Today’s increased incidences of identity theft makes this provision even more important.
Unlawful Debt Collection Class Action Lawsuit Contends Deception
Luz’s claims are “typical of the Class, which all arise from the same operative facts and are based on the same legal theories,” says the unlawful debt collection class action lawsuit.
Financial Recovery Services allegedly violated the FDCPA by “using false, deceptive or misleading” ways in the attempt to collect the debt; threatening to take action that either cannot legally be accomplished or that is not truly intended to be taken; using an unfair means to attempt to collect the debt; and by making a false representation of the character, amount, or legal status of the debt.
The unlawful debt collection class action lawsuit seeks statutory damages, actual damages, pre-judgment interest; post-judgment interest; attorneys’ fees and expenses; and any further relief the court may deem proper.
The Unlawful Debt Collection Class Action Lawsuit is Case No. 1:17-cv-09931 in the U.S. District Court for the Southern 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).
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.
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