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Misleading or Confusing Debt Collection Letter

Debt Papers with "Final Notice" in Red

Debt collectors must state certain information in their first contacts with debtors or at least provide the information within five days of the first contact—so states the Fair Debt Collection Practices Act (FDCPA). The complaint for this class action claims that the debt collection letters of the Law Office of Stephen P. Lamb and Midland Funding are lacking in this area. Specifically, the complaint claims that the letter does not clearly state who currently owns the debt.

Person Knocked Down by Letters D-E-B-T

The complaint for this class action claims that the debt collection letter sent by ProCollect, Inc. is confusing and thus violates the Fair Debt Collection Practices Act (FDCPA). If the letter is half as confusing as the complaint discussing it, it must surely violate some standard of clarity. The complaint asserts that the debt balance is quoted as $0.00, the 50% offer is set at $7.50, and that the $7.50 is actually the full amount of the debt. 

Debt Papers with "Final Notice" in Red

The two plaintiffs in this class action both received confusing debt collection letters from NCB Management Services, Inc. that the complaint claims violate the Fair Debt Collection Practices Act (FDCPA). In one case, the letter does not make clear as to whether the debt had been accelerated or not. In both cases, the letters contain confusing information about making and cancelling electronic payments.

Person Carrying Red Letters "DEBT"

Debt collectors are entitled to try to collect the money owed by consumers, but they are not free to use any means necessary to do so. The complaint for this class action claims that the letter used to collect an alleged debt from plaintiff Lisa Williams violated the Fair Debt Collection Practices Act (FDCPA), because it does not indicate that (a) the debt is currently stale and no one can sue her for it, and (b) if she makes even a small payment, she could restart the statute of limitations and leave herself open to being sued again.

Logo for FDCPA

Debt collectors are entitled to go about their business of collecting consumer debts. But their behavior is regulated, and the complaint for this class action claims that the debt collection letters sent out by FBCS on behalf of Cascade Capital violated the Fair Debt Collection Practices Act (FDCPA). The complaint claims that the required disclosure about the right to dispute the debt is “overshadowed” in the letter by a short-term offer to settle the debt for less than the full amount. 

Letters D E B T Falling Over on Person

When plaintiff Sophia Kambitsis was in a car accident, in January 2017, she was treated at Palms West Hospital in Florida. Because she did not pay the bill, the debt collector NPAS, Inc. took over collection. However, the complaint for this class action alleges that the initial communication from NPAS does not meet the requirements of the Fair Debt Collection Practices Act (FDCPA) in several respects, such as notifying the sender that the letter was from a debt collector and providing proper information about validation and the thirty-day period.

Papers Stamped "Debt Collection"

Even if you owe a company money, a third-party debt collector must obey rules and regulations in trying to collect it. Many of them are set forth in the Fair Debt Collection Practices Act (FDCPA). It’s the FDCPA that the complaint claims was violated in this class action, by a group of related companies, defendants Encore Capital Group, Midland Funding, and Midland Credit Management. A debt collection letter sent by the companies offered an installment plan for repaying a stale debt without mentioning that a single payment could restart the statute of limitations for the debt. 

Word "Debt" in Vise

Plaintiff David Dees allegedly owes money on his home lease agreement, but the complaint for this class action claims that the letter sent by IQ Data International, Inc. to collect the debt does not meet the requirements of the Fair Debt Collection Practices Act (FDCPA). The complaint claims that the letter does not tell Dees who the current creditor is.

Image of Hands Writing Check

Part of the purpose of the Fair Debt Collection Practices Act (FDCPA) is to keep consumers from becoming confused about their debts, so that they can make the best possible decisions about how to handle them. But the complaint for this class action claims that plaintiff Brendalin Lugo was confused by two different parts of the letter she received from Trans-Continental Credit & Collection Corp. First, a section of the letter was in Spanish, and Lugo does not speak Spanish. Second, the letter indicated an interest charge of $0.00 which the complaint claims could imply that the company has the right to charge interest or that interest will be charged in the future. The complaint alleges that the letter violates the FDCPA because it is confusing to the consumer.

Papers Stamped "Debt Collection"

Plaintiff Afsar Raja allegedly borrowed money from WebBank for personal, family, or household purposes, but the complaint for this class action claims that the debt collection letter he received from Vital Recovery Services, LLC violates the Fair Debt Collection Practices Act (FDCPA). The letter claims that Raja owes some $700 in interest charges, but it fails to indicate whether interest is still accruing, making the letter misleading, according to the complaint, as to whether the debt will be paid in full if Raja pays the total indicated.

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