Structured Settlement “Overshadowing” of G-Notice Nevada Class Action

The Fair Debt Collection Practices Act (FDCPA) was designed to prevent abuse by third-party debt collectors trying to collect debts allegedly owed by consumers for debts incurred for personal, family, or household purposes. The complaint for this class action alleges that Structured Settlement and/or Nationwide Capital Services, LLC do not meet the requirements of the FDCPA in a collection letter sent out offering to settle the debt in a way that overshadowed period required to allow the recipient to dispute the debt.

The class for this action is

  • All individuals with Nevada addresses
  • [Who received a debt collection letter from the defendants in this case,]
  • Which letter offered settlement of the debt in less than thirty days from the date of the letter, overshadowing the recipient’s rights under the “G-Notice,”
  • Which letter was sent between December 8, 2019 and December 29, 2020.

Note that the third line of the above class definition, in brackets, does not appear in the original class definition in the complaint but seems implied. For the original wording, see the class definition on page 4 of the complaint linked below.

Plaintiff Thomas Bodovinac allegedly incurred a debt to QC Holdings, Inc. The transactions involved were primarily for personal, family, or household purchases. The complaint claims, “QC Holdings Inc. … purportedly sold the alleged debt to Defendant Nationwide who contracted with the Defendant Structured Settlement to collect the alleged debt.”

On or around March 4, 2020, Structured Settlement sent Bodovinac a debt collection letter. A copy of this letter was attached to the complaint when it was filed as Exhibit A.

The complaint says, “When a debt collector solicits payment from a consumer, it must, within five days of an initial communication, provide the consumer with a written validation notice which must include” certain information and notices.

One of the things that must be included is a notice that the consumer may dispute the debt, or any part of it, within thirty days after the receipt of the notice, provided the consumer informs the debt collector in writing. The debt collector must then obtain verification of the debt or a copy of the judgment and send that to the consumer.

Although the Structured Settlement letter does contain this “G-Notice,” it also contained an offer for the settlement of the debt, provided the consumer made a payment by March 31, 2020. The complaint points out that this is less than thirty days after the receipt of the letter and that the G-Notice about disputing the debt within thirty days “is completely overshadowed by the earlier offers of the settlement in the letter.”

In addition, the two defendants in this case, the complaint alleges, “are one and the same” which the complaint claims may confuse the consumer about who the current creditor is.

Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Structured Settlement “Overshadowing” of G-Notice Nevada Complaint

December 8, 2020

The Fair Debt Collection Practices Act (FDCPA) was designed to prevent abuse by third-party debt collectors trying to collect debts allegedly owed by consumers for debts incurred for personal, family, or household purposes. The complaint for this class action alleges that Structured Settlement and/or Nationwide Capital Services, LLC do not meet the requirements of the FDCPA in a collection letter sent out offering to settle the debt in a way that overshadowed period required to allow the recipient to dispute the debt.

Structured Settlement “Overshadowing” of G-Notice Nevada Complaint

Case Event History

Structured Settlement “Overshadowing” of G-Notice Nevada Complaint

December 8, 2020

The Fair Debt Collection Practices Act (FDCPA) was designed to prevent abuse by third-party debt collectors trying to collect debts allegedly owed by consumers for debts incurred for personal, family, or household purposes. The complaint for this class action alleges that Structured Settlement and/or Nationwide Capital Services, LLC do not meet the requirements of the FDCPA in a collection letter sent out offering to settle the debt in a way that overshadowed period required to allow the recipient to dispute the debt.

Structured Settlement “Overshadowing” of G-Notice Nevada Complaint
Tags: FDCPA, Misleading or Confusing Debt Collection Letter, Unlawful Debt Collection