Woman Files New Debt Collection Practices Class Action Lawsuit

A New York resident filed a debt collection practices class action lawsuit against Alltran Financial, alleging the debt collection company violated the Fair Debt Collection Practices Act (FDCPA).

The plaintiff, Stella F., alleges that she received a debt collection letter from Alltran Financial on Nov. 9, 2017 in an attempt to collect the alleged debt from an unpaid account, on behalf of Chase Bank. The letter she received is misleading, she claims, implying that paying the debt in full instead of coming to a settlement agreement would be more beneficial for future credit with Chase.

Indeed, one section of the letter reads: “If we settle this debt with you for less than the full outstanding balance, Chase may offer you less favorable terms in the future for some Chase products or services, or may deny your application.” According to the debt collection practices class action lawsuit, this implied that paying the full amount rather than settling would lead to substantial credit benefits, though this is not actually true.

On top of this allegedly misleading section, the lawsuit also notes that the debt collection letter stating the “amount due as of November 9, 2017.” This wording implied that, after this date, the amount would grow due to accrual of interest. This could lead the plaintiff to feel the need to pay immediately to avoid interest accruing, Stella argues. However, Stella’s account was not actually accruing interest, so this statement, the debt collection practices class action lawsuit claims, was misleading and deceptive, according to her complaint.

Stella filed her debt collection practices class action lawsuit on behalf of herself and other New York residents in a similar situation, which may include hundreds or even thousands of class members who have received debt collection letters from Alltran that engaged in similar practices. The debt collection practices class action lawsuit was filed on Jan. 31, 2018 in the U.S. District Court for the Eastern District of New York.

What is The FDCPA?

The Fair Debt Collection Practices Act (FDCPA) is a set of debt collection regulations passed back in 1978 to protect consumers like Anthony from debt collection harassment and unfair practices. New York FDCPA rules are more in depth than those at the federal level. The New York FDCPA expanded on these federal laws in 2015.

Filing a Debt Collection Practices Class Action Lawsuit

If you live in New York and a debt collector agency such as Alltran Financial has used unfair debt collection practices, you may be able to file a debt collection practices class action lawsuit and gain compensation owed for FDCPA violations of federal and/or state debt collection regulations.

The Debt Collection Practices Class Action Lawsuit is Case No. 1:18-cv-00666-WFK-RER, in the U.S. District Court for the Eastern 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.