Unlawful Debt Collection Lawsuit Claims Letter Violated FDCPA

An unlawful debt collection lawsuit was filed in U.S. District Court for the Eastern District of New York Civil Division on April 25, 2018.

The plaintiff, Brian Wagner, filed this unlawful debt collection lawsuit on behalf of himself, but also seeks to represent a Class of people similarly affected by the actions of the defendants. The named defendants are collections firm Gutman, Mintz, Baker & Sonnenfeldt LLP and three of its principals.

According to the narrative of the unlawful debt collection lawsuit, the Gutman law firm sent a letter dated April 25, 2017 to the plaintiff which allegedly violated his rights under the Fair Debt Collection Practices Act (FDCPA).

The letter was an attempt on behalf of the law firm to collect a debt owed to an unidentified third party. Wagner alleges that the letter exposed him to abusive, deceptive, and misleading debt collection efforts.

Wagner says the communication sent to him on April 25 last year clearly identified the amount of the debt owed to be precisely $11,904.78. The third party for whom the debt collection process was being undertaken by the law firm had apparently been adding interest on to the debt’s principal since June 1, 2015.

This added interest was not specified in the Gutman letter, Wagner claims. In stating that the amount owed was $11,904.78, Wagner says, the letter had the potential to mislead him into thinking that this amount would resolve the debt in its entirety if paid immediately.

Without explanation of how the principal had already and would continue to increase with added interest over time, the unlawful debt collection lawsuit alleges that the defendants violated the FDCPA. The letter also allegedly violated this federal law by failing to clearly identify the third-party lender.

A little over two months later, Gutman allegedly filed suit against Wagner seeking the base principal plus all accumulated interest since June 1, 2015.

Wagner’s unlawful debt collection lawsuit states that the plaintiff had responded to the initial April letter with a letter in kind dated May 24, 2017, which disputed the debt as presented and sought validation of the total amount. By filing the case against Brian without responding to his dispute letter, he claims, the defendants were also in violation of FDCPA.

Wagner hopes to represent a Class of people that have also received debt-collection letters from the Gutman law firm lacking necessary and vital elements. The class period identified is one year from the date of recent filing or April 24, 2017. He believes that the potential size of the Class is at least 50 people or more.

Wagner hopes for class action certification and requested judgment against the Gutman law firm and its principals. He asks for a trial by jury and compensation that includes statutory damages, attorney and court fees, and any other consideration that the jury deems fair in the light of the evidence presented.

The Unlawful Debt Collection Lawsuit is Wagner v. Gutman, Mintz, Baker & Sonnenfeldt LLP, et al., Case No. 2:18-cv-02436-JFB-GRB in U.S. District Court for the Eastern District of New York.

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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.