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Immediate Credit Recovery Overshadowing Statement Debt Letter FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) specifies that when a debt collection attempts to collect a debt via a letter, it must include certain information in the letter—and it must not contradict or overshadow that information by other statements that might confuse the “least sophisticated consumer” who might receive such a letter. According to the complaint for this class, action, Immediate Credit Recovery, Inc. sent a letter to plaintiff Kimali Q. Corley that contained just such an overshadowing statement.

The class for this action is all persons similarly situation in the state of New York from whom Immediate Credit Recovery, Inc. tried to collect a consumer debt with a collection letter which overshadows the consumer’s right to request the name of the original creditor, between November 10, 2016 and the present.

The FDCPA was passed to curb abusive, deceptive, and unfair debt collection practices perpetrated on consumers and to ensure that companies who used fair and honest means were not disadvantaged in collecting debts. It provides a list of information that must be included in debt collection letters, and requires that that information be conveyed clearly, without adding other information that might confuse consumers.

One of the things the FDCPA requires is a statement that the consumer receiving the letter may dispute the debt or any part of the amount within the next thirty days. If the consumer does dispute the debt, the debt collector is required to obtain verification of the debt or a copy of a judgment against the consumer, and it must stop its collection activities until it has done this.

The letter from Immediate Credit Recovery, attached to the complaint as Exhibit 1, says, “if you do not dispute the validity of this debt, and to prevent further collection activity from being taken, you must make payment in full directly to Immediate Credit Recovery, Inc.” According to the complaint, this statement could confuse an unsophisticated consumer about her rights, because it overshadows the right to dispute the debt. If the consumer does dispute the debt, the company must stop its collection efforts until it has validated the debt, and that is not contingent on the consumer making any payment.

The complaint claims that the statement could make an unsophisticated consumer believe that the only way to stop the collection efforts is to make payment in full. 

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Immediate Credit Recovery Overshadowing Statement Debt Letter FDCPA Complaint

November 10, 2017

The Fair Debt Collection Practices Act (FDCPA) specifies that when a debt collection attempts to collect a debt via a letter, it must include certain information in the letter—and it must not contradict or overshadow that information by other statements that might confuse the “least sophisticated consumer” who might receive such a letter. According to the complaint for this class, action, Immediate Credit Recovery, Inc. sent a letter to plaintiff Kimali Q. Corley that says, “if you do not dispute the validity of this debt, and to prevent further collection activity from being taken, you must make payment in full directly to Immediate Credit Recovery, Inc.” According to the complaint, this statement could confuse an unsophisticated consumer about her rights, because it overshadows the right to dispute the debt.

immediate_credit_recovery_fdcpa_complaint.pdf

Case Event History

Immediate Credit Recovery Overshadowing Statement Debt Letter FDCPA Complaint

November 10, 2017

The Fair Debt Collection Practices Act (FDCPA) specifies that when a debt collection attempts to collect a debt via a letter, it must include certain information in the letter—and it must not contradict or overshadow that information by other statements that might confuse the “least sophisticated consumer” who might receive such a letter. According to the complaint for this class, action, Immediate Credit Recovery, Inc. sent a letter to plaintiff Kimali Q. Corley that says, “if you do not dispute the validity of this debt, and to prevent further collection activity from being taken, you must make payment in full directly to Immediate Credit Recovery, Inc.” According to the complaint, this statement could confuse an unsophisticated consumer about her rights, because it overshadows the right to dispute the debt.

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