FDCPA Class-Action Filed Against Debt Buyer, Collector

A class-action lawsuit has been filed in federal court in New Jersey, alleging that a debt buyer and the collector it hired allegedly violated the Fair Debt Collection Practices Act because it sent a collection letter to an individual without the debt buyer having a proper license to operate in the state, and that the collector should have known that, and because the letter did not itemize the interest, fees, and other charges that were included in the balance that was owed.

A copy of the complaint in the case of Torres v. CVI SGP-CO Acquisition Trust and Faloni Law Group can be accessed by clicking here.

The plaintiff received a collection letter from one of the defendants, seeking to collect $1,038.20 in a judgment that was obtained against the plaintiff for an unpaid retail credit card debt. CVI SGP-CO had acquired the debt and hired Faloni to collect on it. But the plaintiffs allege that CVI SGP-CO did not have a license that was required under the New Jersey Consumer Finance Leasing Act or one issued by the New Jersey Department of Banking and Insurance. Because the debt buyer did not have the proper license, the collection firm was prohibited from attempting to collect on the debt, the plaintiffs allege in their complaint.

The complaint accuses the defendant of violating Sections 1692e(2)(A), 1692e(5), 1692e(10), and 1692f of the FDCPA. It is seeking to include anyone who received a collection letter from the defendant that was seeking to collect on any debt that was owned by the debt buyer.

A least sophisticated consumer who received a collection letter from the defendant would believe that the defendants were legally allowed to collect on the debt, according to the plaintiff’s complaint. As well, the letter violated the FDCPA because it did not disclose that amount owed included an amount for interest and fees and that interest was continuing to accrue on the account.

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