Penn Credit Corporation Multiple Addresses in Debt Letter FDCPA Class Action

The Fair Debt Collection Practices Act (FDCPA) governs the debt-collection practices of third-party debt collectors, such as Penn Credit Corporation, who try to collect consumer debts on behalf of other lenders. This class action concerns a debt collection letter Penn sent to one or more consumers. The letter contained three different addresses, without specifying which one the recipient should use.

The class for this action is (a) all consumers in Michigan, (b) to whom Penn mailed a letter having the same form as the letter cited in this case (c) for debts taken for personal, family, or household purposes, (d) where the letter was sent between January 11, 2020 and February 1, 2021.

The FDCPA requires that debt collectors provide full, true, and accurate information, so that consumers can make informed decisions and take the best possible actions when they owe another party money. Consumes may also dispute the debt or any portion of it.

Penn sent a debt collection letter to the plaintiff in this case, Lamar Mathews, dated January 24, 2020. The letter included a detachable payment coupon at the bottom. However, the letter contained three different addresses.

The first was at the top left of the page, showing a street address in Harrisburg, Pennsylvania.

The second was on the detachable coupon at the bottom of the letters. The coupon showed a post office box address in Oaks, Pennsylvania on the left. On the right was a place for Mathews to enter his credit card information.

Below that, Matthews’s address was printed on the left; at the bottom right was the third address, a Harrisburg, Pennsylvania post office box.

The complaint alleges, “The letter did not specify to which address payment should be made or to which address a dispute should be sent.”

The FDCPA does not permit debt collectors to send out misleading or confusing letters that could be construed to have two or more meanings, of which at least one is wrong. The standard for judging whether a letter is confusing or misleading is how it would be perceived by the “least sophisticated consumer.”

The complaint claims that “the letter is open to more than one reasonable interpretation by a consumer of any level of sophistication about which address should be used to send a payment or any other communication, such as a dispute.”

Why does this matter? The consumer has only thirty days from the receipt of the letter to dispute the debt. If a dispute letter is sent to the wrong address, the consumer may lose the opportunity to make that dispute. If a payment goes to the wrong address, it may be returned, the customer may incur additional late fees, or the customer’s attempt to pay off the debt may be delayed.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Penn Credit Corporation Multiple Addresses in Debt Letter FDCPA Complaint

January 11, 2021

The Fair Debt Collection Practices Act (FDCPA) governs the debt-collection practices of third-party debt collectors, such as Penn Credit Corporation, who try to collect consumer debts on behalf of other lenders. This class action concerns a debt collection letter Penn sent to one or more consumers. The letter contained three different addresses, without specifying which one the recipient should use.

Penn Credit Corporation Multiple Addresses in Debt Letter FDCPA Complaint

Case Event History

Penn Credit Corporation Multiple Addresses in Debt Letter FDCPA Complaint

January 11, 2021

The Fair Debt Collection Practices Act (FDCPA) governs the debt-collection practices of third-party debt collectors, such as Penn Credit Corporation, who try to collect consumer debts on behalf of other lenders. This class action concerns a debt collection letter Penn sent to one or more consumers. The letter contained three different addresses, without specifying which one the recipient should use.

Penn Credit Corporation Multiple Addresses in Debt Letter FDCPA Complaint
Tags: FDCPA, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection