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Diversified Consultants Debt Discharged in Bankruptcy Alabama FDCPA Class Action

The complaint for this class action alleges that Diversified Consultants, Inc., a nationwide debt consumer collector, violated the Fair Debt Collection Practices Act (FDCPA) in its attempts to collect a debt from plaintiff Marcus Butler that had been discharged in bankruptcy.

The class for this action includes all persons in Alabama from whom Diversified tried to collect a delinquent consumer debt, allegedly owed to AT&T Mobility, that had been discharged in bankruptcy, using the same collection letter as the one sent to plaintiff Butler, from August 2, 2016 to the present.

Due to unemployment, the complaint says, plaintiff Butler and his wife were forced to discharge their debts in a bankruptcy, filed on December 7, 2015. Among the debts the Butlers listed were debts to AT&T Mobility. According to the complaint, in January of 2016, the court sent AT&T Mobility an electronic notice of the bankruptcy with information about the meeting of creditors and deadlines.

The complaint says that on April 28, 2017, the Butlers received the discharge of their debts, and on the following day, AT&T Mobility was sent an electronic notice of the discharge. 

However, the complaint claims, on May 14, 2017, AT&T Mobility sent Butler a collection letter asking for payment of the debt, even though it had been discharged in the bankruptcy, and Butler’s attorney sent AT&T a letter in response, asking the company to cease trying to collect the discharged debt.

On May 17, Diversified attempted to collect the same debt, the complaint claims, even though Butler’s bankruptcy is a matter of public record and “readily discoverable by any competent debt collector via one of the bankruptcy ‘scrub’ services”. The complaint therefore alleges that the company violated the FDCPA in using a “false representation of the character, amount or legal status of” his debt in demanding payment of a debt that had been discharged.

The complaint also alleges a second violation, in that the FDCPA forbids a debt collector from continuing to demand payment of a debt that the consumer has indicated that they refuse to pay. According to the complaint, the bankruptcy and notices issued by the court constitute such notices, so that Divergent should not have been attempting to collect the debt.   

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Diversified Consultants Debt Discharged in Bankruptcy Alabama FDCPA Complaint

August 2, 2017

The complaint for this class action alleges that Diversified Consultants, Inc., a nationwide debt consumer collector, violated the Fair Debt Collection Practices Act (FDCPA) in its attempts to collect a debt from plaintiff Marcus Butler that had been discharged in bankruptcy. According to the complaint the company violated the FDCPA in two ways, by making a false representation in its collection letter that the debt was still owed, and by continuing to communicate with Butler even after his bankruptcy and court notices that his debts had been discharged.

diversified_consultant_fdcpa_complaint.pdf

Case Event History

Diversified Consultants Debt Discharged in Bankruptcy Alabama FDCPA Complaint

August 2, 2017

The complaint for this class action alleges that Diversified Consultants, Inc., a nationwide debt consumer collector, violated the Fair Debt Collection Practices Act (FDCPA) in its attempts to collect a debt from plaintiff Marcus Butler that had been discharged in bankruptcy. According to the complaint the company violated the FDCPA in two ways, by making a false representation in its collection letter that the debt was still owed, and by continuing to communicate with Butler even after his bankruptcy and court notices that his debts had been discharged.

diversified_consultant_fdcpa_complaint.pdf
Tags: Attempt to Collect Settled Debt, Unlawful Debt Collection