Written Notice Not Necessary to Dispute a Debt, Plaintiff Argues

A woman has filed a complaint against Penn Credit Corporation, alleging the company misled her when she tried to dispute a debt.

Plaintiff Patricia R. filed a class action complaint on behalf of herself and others similarly situated in the state of New York who were victims of Penn Credit’s alleged violations of the Fair Debt Collections Practices Act (FDCPA).

The FDCPA “prohibits debt collectors from engaging in abusive, deceptive and unfair practices.”

According to the complaint, Penn Credit is a debt collecting company that made efforts to collect an alleged debt from Patricia by sending her a collection letter.

Patricia called Penn Credit to ask about the alleged debt and to let the company know she disagreed with the account balance and wished to file a dispute.

The telephone representative allegedly said, “Ok, all she has to do is write a letter of dispute, explaining that she disagrees with the balance.”

Patricia then tried to confirm that “’to dispute that account I have to call them,” to which the telephone representative said, “you are disputing it directly with them.”

The telephone representative gave Patricia the address to mail her letter to dispute a debt.

Plaintiff: Written Notice Not Needed to Dispute a Debt

Patricia’s complaint alleges Penn Credit violated the FDCPA by not allowing her to dispute the debt orally over the phone. Penn Credit allegedly violated several portions of the FDCPA “by using false, deceptive, and misleading representations in connection with the collection of a debt.”

The FDCPA allows a consumer to dispute a debt over the phone, and no documentation is needed to submit that dispute.

The lawsuit says that Penn Credit intentionally denied Patricia and other debts the option to dispute a debt orally in an alleged effort to intimidate and convince them the debts had to be paid.

Patricia alleges Penn Credit preyed upon consumers who were not experts in the legal or financial field. These consumers were misled into believing that to dispute a debt, they had to submit a letter in writing and to provide documentation.

The FDCPA does not require a consumer to dispute a debit in writing. In addition, the FDCPA does not require a consumer to indicate a reason for the dispute.

FDCPA Protects Consumers from False Representation

The FDCPA protects U.S. consumers from debt collectors who try to make false representations. A debt collector is not allowed to pretend to be a lawyer, a government representative, or a law enforcement employee.

Debt collectors are not allowed to harass consumers with abusive or threatening language or by communicating about the debt with friends, family or an employer.

A lawyer well-versed in FDCPA can help ensure your rights are preserved.

The New York FDCPA Lawsuit is Case No. 1:17-cv-06374-ARR-RLM 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.