In December of 2015, Latonia M. Foster filed a lawsuit against Allianceone
after receiving a collection letter that violated Section 1692e of the
Fair Debt Collection Practices Act (FDCPA). Soon after, the defendant filed a Motion to Dismiss pursuant
to Federal Rule of Civil Procedure 12(b)(6), which attempted to dismiss
the lawsuit for “failure to state a claim upon which relief can
be granted.” A Memorandum and Opinion in the case of
Foster v. Allianceone Receivables Management, LLC by the U.S. District Court Northern District of Illinois denied Allianceone’s motion.
Foster alleged that the letter she received contained false or misleading
information, specifically when it came to language regarding the IRS that
was meant to intimidate. The plaintiff argued that this language was a
“collection ploy designed to deceive or mislead” consumers
into believing that the IRS might be involved in their debt when there
are no circumstances under which this could be true. The court agreed
with this position. Stating that a person of “limited commercial
savvy” and “modest education” could plausibly be mislead
by such statements. The lawsuit will be allowed to continue – a
victory for the consumer.
US District Court in Illinois Finds Disclosure of Potential Tax Consequences
for Settling an Account is Misleading to Consumer
The FDCPA exists to protect consumers from deceptive and/or harassing debt
collection tactics. If you believe your consumer rights have been violated,
you should have your case evaluated by a Chicago consumer lawyer at Sulaiman
Law, LTD. Call us at (312) 313-1613 to
schedule a consultation.