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Global Credit & Collection Validation Rights and Settlement Offers Class Action

The complaint for this class action brings suit against three parties involved in debt collection: Global Credit & Collection Corporation (GCC), Distressed Asset Portfolio III (DAP III), and Unifund CCR, LLC. The complaint alleges that a debt collection letter presented the consumer’s validation rights and two settlement offers in a way that was confusing and did not make clear how to preserve rights to both options. The complaint brings suit under the federal Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act (WCA).

Plaintiff Kladji Meco allegedly borrowed money from Capital One Bank (USA), NA via a credit card for personal, family, or household expenses. At some point, GCC mailed Meco a debt collection letter dated June 14, 2019.

The letter contains a statement of Meco’s right to dispute the debt or receive validation of it if the dispute is presented or validation is requested within thirty days of receiving the letter.

The letter also contains two settlement offers. One involves a single large payment of $2199.70, which would settle the debt for less than the full amount. The second involved monthly payments of $274.96.

Right after the offers was a statement that “all payments must be made within 30 days of one another,” although the letter did not include any deadlines for accepting the offers or anything else. Finally, the letter stated that GCC was “not obligated to renew this offer.”

This combination of information raises confusion in several ways, the complaint claims.

First, it’s unclear how the offers and the requirement for payments “within 30 days of one another” can be combined with the right to dispute the debt or request validation within thirty days. Did a payment have to be sent in at the same time as the dispute or validation request?

Then, the statement that GCC did not have to renew the offer, coupled with the lack of a deadline, makes it seem as though the company could rescind it at any time. Would disputing the debt lead to the loss of the offers?

Also, if payments be made no more than thirty days apart, does this mean that Meco has a month or less to make each payment? If Meco takes a few days longer in any month, would that cancel the offer?

The FDCPA forbids false, misleading or deceptive representations in attempts to collect consumer debts. The complaint also argues that the company violates both the FDCPA and the WCA when it implies that it might revoke the settlement offers under the above conditions.

The class for this action is

  • All natural persons in Wisconsin
  • Who were sent a collection letter in the same form as the one in this case,
  • Seeking to collect a debt incurred for personal, family, or household purposes,
  • Between December 27, 2018 and December 27, 2019,
  • That was not returned by the postal service.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Global Credit & Collection Validation Rights and Settlement Offers Complaint

December 27, 2019

The complaint for this class action brings suit against three parties involved in debt collection: Global Credit & Collection Corporation (GCC), Distressed Asset Portfolio III (DAP III), and Unifund CCR, LLC. The complaint alleges that a debt collection letter presented the consumer’s validation rights and two settlement offers in a way that was confusing and did not make clear how to preserve rights to both options. The complaint brings suit under the federal Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act (WCA).

global_credit_collection_fdcpa_compl.pdf

Case Event History

Global Credit & Collection Validation Rights and Settlement Offers Complaint

December 27, 2019

The complaint for this class action brings suit against three parties involved in debt collection: Global Credit & Collection Corporation (GCC), Distressed Asset Portfolio III (DAP III), and Unifund CCR, LLC. The complaint alleges that a debt collection letter presented the consumer’s validation rights and two settlement offers in a way that was confusing and did not make clear how to preserve rights to both options. The complaint brings suit under the federal Fair Debt Collection Practices Act (FDCPA) and the Wisconsin Consumer Act (WCA).

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