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Professional Debt Mediation Letter and Name of Creditor Class Action

In this class action, the complaint alleges that Professional Debt Mediation, Inc. (PDM) “misrepresented” the plaintiff’s rights to obtain the name and address of the original creditor and “improperly demanded that he pay a debt in full, regardless of whether he knew the identity of the current creditor.” It brings suit under the Fair Debt Collection Practices Act (FDCPA), which tries to preserve the rights of consumers against third-party debt collectors.

Plaintiff Ryan Rio incurred a consumer debt for cable television services for personal use. Because of certain financial circumstances, he was later unable to pay this debt.

In the summer of 2019, Rio received a collection letter dated June 5, 2019 from ABS-CBN International that attempted to collect the debt. This “First Collection Letter” indicated that the debt was owed to ABS-CBN International or ABS I.

Two months later, he received what the complaint calls the “Second Collection Letter,” from PDM, dated August 2, 2019. It was trying to collect what appears to be the same debt. The letter indicates that the “creditor” is ABS-CBN International INC/II or ABS II. It does not indicate whether this is the “current creditor” or the “original creditor.” The complaint claims, “The debt cannot be owed to both ABS I and ABS II, as only one entity can be … the current creditor to whom the debt is owed.”

One of the requirements of the FDCPA is “the name of the creditor to whom the debt is owed…” The letter admitted this, saying, “If you request of this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from the current creditor.”

However, the letter contained another statement contradicting this: “If you do not dispute this debt, it is necessary that you send the balance in full by return mail.”

The complaint does not take up the rather draconian insistence that payment in full must be made “by return mail.” Instead, it points out that Rio had a third option: to request the name of the original creditor. It claims that the statement about dispute or immediate payment overshadows Rio’s right to request the name of the creditor.

The class for this action is

  • All persons similarly situated in Illinois
  • From whom PDM tried to collect a defaulted consumer debt
  • To whom PDM sent a “Notice of Debt” as defined in § 1692g of the FDCPA
  • Which contains the sentence “[i]f you do not dispute this debt, it is necessary that you send the balance in full by return mail” and that identifies the current creditor as the “Creditor,”
  • Which letter was sent between December 28, 2018 and December 28, 2019.
Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Professional Debt Mediation Letter and Name of Creditor Complaint

December 28, 2019

In this class action, the complaint alleges that Professional Debt Mediation, Inc. (PDM) “misrepresented” the plaintiff’s rights to obtain the name and address of the original creditor and “improperly demanded that he pay a debt in full, regardless of whether he knew the identity of the current creditor.” It brings suit under the Fair Debt Collection Practices Act (FDCPA), which tries to preserve the rights of consumers against third-party debt collectors.

professional_debt_mediation_fdcpa_compl.pdf

Case Event History

Professional Debt Mediation Letter and Name of Creditor Complaint

December 28, 2019

In this class action, the complaint alleges that Professional Debt Mediation, Inc. (PDM) “misrepresented” the plaintiff’s rights to obtain the name and address of the original creditor and “improperly demanded that he pay a debt in full, regardless of whether he knew the identity of the current creditor.” It brings suit under the Fair Debt Collection Practices Act (FDCPA), which tries to preserve the rights of consumers against third-party debt collectors.

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