Each month, insideARM provides a case law review highlighting positive,
and some negative, outcomes for the accounts receivable management industry.
Here are some notable cases:
Bloodworth v. United Credit Service, Inc.
The court affirmed that use of the language “will consider other
methods of enforcing collection” is a threat under the FDCPA.
Velez v. Enhanced Recovery Company, LLC
The court determined that a 1099(c) disclosure contained in an initial
letter was a statement that could deceive or mislead “the least
sophisticated consumer” into thinking that they must pay a certain
amount in order to avoid being reported to the IRS, and that settling
a debt could lead to negative consequences.
United States v. Commercial Recovery Systems, Inc.
Court granted summary judgment in favor of the FTC for claims against a
collection agency over clear violations of the FDCPA by impersonating
attorneys and threatening arrest.
Blanchard v. North American Credit Services
The court determined that the phrase “we want to offer you the chance
to pay what you owe voluntarily…” is not a threat of litigation.
Furthermore, they found that directing consumers to go to a website in
order to dispute a debt is not a violation of the FDCPA.
Your Rights Under the FDCPA
The Fair Debt Collection Practices Act (FDCPA) provides consumers with
a number of important protections. For example, debt collectors are forbidden
from using threatening or profane language to intimidate a person into
paying a debt. Furthermore, creditors are forbidden from contacting a
debtor with known legal representation, or from making phone calls before
8:00 A.M. or after 9:00 P.M. Creditors who engage in abusive and deceptive
debt collection practices may be responsible for paying damages, including
compensation for attorney fees, physical and emotional distress, recovery
of garnished wages, and lost income due to harassing calls at work.
If you feel you have been harassed by a creditor, you should immediately
get in touch with an attorney who can help you file a claim.
Contact the Chicago consumer lawyers at Sulaiman Law Group, LTD at (312) 313-1613.