Woman Files New Lawsuit Over Abusive Debt Collection Practices

A New York woman has filed a new class action lawsuit against GC Services, alleging the collection agency engaged in abusive debt collection practices affecting her and many others like her.

The plaintiff, Flor V., filed her lawsuit against GC Services on behalf of herself and others in a similar situation on Jan. 9.

According to the lawsuit, GC Services attempted to collect an alleged debt from Flor, but did so using abusive debt collection practices: namely, an illegal form letter that violated the FDCPA, or Fair Debt Collection Practices Act.

GC Services was attempting to collect from Flor a debt she allegedly owed Chase Bank. The collection agency sent Flor a collection letter on Jan. 9, 2017.

According to Flor, the letter read “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.” The complaint says the letter employed abusive debt collection practices by presenting itself in a false or misleading manner.

The lawsuit claims that GC Services’ abusive debt collection practices were not limited to Flor alone, but were actually consistent in how they dealt with all of the alleged debtors they contacted. Because of this, Flor notes in the lawsuit that hundreds of others have been affected by these allegedly abusive debt collection practices.

Flor’s abusive debt collection practices lawsuit was filed on Jan. 9, 2018 in the U.S. District Court for the Eastern District of New York.

Under FDCPA guidelines, debt collectors like GC Services have a legal responsibility to consumers to be painstakingly clear in their letters. A letter must be able to communicate the amount of debt efficiently to what is referred to as the “least sophisticated consumer.” However, plaintiffs like Flor allege that the least sophisticated consumer would likely be confused about the details of the debt given the information provided, constituting abusive debt collection practices.

The Fair Debt Collection Practices Act

The Fair Debt Collection Practices Act (FDCPA) is a series of rules passed back in 1978 and that have since been updated. The FDCPA is meant to protect consumers from abusive debt collection practices that may harass or confuse a consumer. The FDCPA helps prevent abusive debt collection practices like calling a debtor at inappropriate times or locales (like at work) and threatening or harassing debtors.

New York FDCPA rules are more debtor-friendly than those at the federal level. The New York FDCPA expanded on federal regulations in 2015. These updated New York debt collection rules ban debt collectors from engaging in the following abusive debt collection practices:

• Sending a confusing debt collection letter
• Communicating with third parties about an alleged debt
• Making threats
• Harassment
• Adding fees or collection charges to the debt
• Calling too often
• Calling at inconvenient times of day
• Calling at work if the consumer objects
• Collecting on old debts
• Making robocalls

Filing a New York FDCPA Lawsuit

If you live in New York and a debt collector like GC Services has engaged in abusive debt collection practices in its attempt to collect a debt, you may be able to file a FDCPA lawsuit.

The Abusive Debt Collection Practices Lawsuit is Case No. 1:18-cv-00142, 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.