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Cases in Point: A Validation Notice FDCPA Fumble?

Ever think common courtesy would land you a lawsuit? An unpaid auto loan prompted a validation notice that included the phrase “We look forward to hearing from you.” The plaintiff claimed there was a violation of Sections 1692e and 1692g of the FDCPA. Here’s what you need to know.

  • According to the FDCPA, you cannot use false and deceptive means to collect a debt
  • By using the phrase “We look forward to hearing from you,” the plaintiff alleged the potential for misinterpretation
  • The letter also said “If you…” which the plaintiff claimed could have been interpreted as an invitation to verbally dispute the debt
  • It is required for a consumer to verbally dispute a debt in writing
  • As a result, the plaintiff argued the verbiage was misleading
  • The judge disagreed, stating that even the least sophisticated consumer could have gathered the contrary
  • She observed that the Defendant carefully relied on statutory language required by the FDCPA
  • The letter neither threatens nor encourages the consumer to challenge the validity of the debt

Looking for more information about validation notices? Check out Ferrulli v. BCA Financial Services and Ortiz v. Diversified Consultants, Inc. for more on what can and cannot be included in a notice. Looking for FDCPA compliance guidelines? Click here!

 

 

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Debt Collection 101: Episode 56 – Fair Debt Collection Practices Act Regulations: Are Debt Buyers Debt Collectors?

Are Debt Buyers Subject Fair Debt Collection Practices Act Regulations?

Though a previous case went against debt buyers falling under Fair Debt Collection Practices Act regulations a new case might turn that ruling around. In today’s episode, we’ll be discussing the Tepper vs. Amos Financial case and what it means for debt buyer regulations.
Watch and Keep Reading!