Failure to Mark Debt as Disputed
What can a consumer do when they call to dispute a debt and the debt collector refuses to even take note of the dispute? The complaint for this class action claims that the refusal to accept a dispute of a debt is a violation of the Fair Debt Collection Practices Act (FDCPA).
Beginning around June 2017, IQ Data International contacted plaintiff Katherine Tohanczyn, trying to collect a debt from her. Tohanczyn did not believe she owed the debt, but according to the complaint for this class action, IQ Data refused to do anything to validate the debt. The complaint alleges that IQ Data reported the debt on Tohanczyn’s consumer report, continued to call her multiple times to try to obtain payment, and continued to provide derogatory information on the alleged debt to credit reporting agencies.
When Corey Delon Gordon, Sr. obtained a copy of his credit report, the complaint for this class action alleges, he saw on it tradelines in the name of Specialized Loan Servicing (SLS) indicating a debt, and wrote to SLS, asking for validation and verification of the debt. But according to the complaint, SLS did nothing, continuing to report the debt to credit agencies without indicating that it was disputed—which is not simply annoying but a violation of the Fair Debt Collection Practices Act (FDCPA).