fbpx

FMA Alliance Accruing Interest and Disputation in Writing FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) is careful in specifying what must and must not be said in debt collection letters (and even on their envelopes). However, according to the complaint for this class action, the letters sent by FMA Alliance, Ltd. violate the law by omitting important information or by “overshadowing” information with statements that sound misleading or contradictory.

The class for this action is all persons in the state of New York from whom FMA Alliance tried to collect a consumer debt using the same unlawful form letter herein, from November 13, 2016 to the present.

The FDCPA was passed to prevent debt collectors from using unfair, deceptive, abusive, or misleading methods in attempting to collect debts, and also to make sure that companies that used appropriate and honest methods were not placed at a disadvantage by other companies’ unfair tactics.

The complaint for this class action alleges that the letter sent to plaintiff Christina Mitchell by FMA Alliance violates the FDCPA in at least two respects.

First, the FDCPA requires that the written notice sent to a consumer with details on the debt provide certain information, including the amount of the debt, and whether interest, late fees, or other charges are still accruing. According to the complaint, the law requires that the written notice “must allow the least sophisticated consumer to determine what she will need to pay to resolve the debt at any given moment in the future” and must explain “any fees or interest that may cause the balance to increase in the future,” among other things.

The debt collection letter sent by FMA Alliance to Mitchell says, “Because of interest, late charges, and other charges that may vary from day to day, the amount due on the day you pay may be greater.” According to the complaint, this vague statement doesn’t fulfill the requirements of the law; they imply that Mitchell may owe more than the stated amount but give no idea as to how the amount may be increasing.

Second, the consumer has the right to dispute the debt within thirty days of the notice, and the disputation does not need to be in writing. While the FMA Alliance letter does not specifically say that the dispute must be in writing, the complaint alleges that the line “Please send all payments or correspondence to…” overshadows the statement about the right to dispute the debt and implies that communications must be in writing, at least from the perspective of the least sophisticated consumer. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

FMA Alliance Accruing Interest and Disputation in Writing FDCPA Complaint

November 13, 2017

According to the complaint for this class action, the letters sent by FMA Alliance, Ltd. violate the FDCPA by omitting important information or by “overshadowing” information with statements that sound misleading or contradictory. First, the letter vaguely mentions interest and fees that may accrue, but provides no specifics; and second, according to the complaint, it implies that disputation of the debt or amount owed must be in writing. 

fma_alliance_fdcpa_complaint.pdf

Case Event History

FMA Alliance Accruing Interest and Disputation in Writing FDCPA Complaint

November 13, 2017

According to the complaint for this class action, the letters sent by FMA Alliance, Ltd. violate the FDCPA by omitting important information or by “overshadowing” information with statements that sound misleading or contradictory. First, the letter vaguely mentions interest and fees that may accrue, but provides no specifics; and second, according to the complaint, it implies that disputation of the debt or amount owed must be in writing. 

fma_alliance_fdcpa_complaint.pdf
Tags: FDCPA, Misleading or Confusing Debt Collection Letter