Complaint Accuses Agency of Attempting to Collect Settled Debt

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A complaint has been filed in federal court in Colorado, accusing a collector of violating the Fair Debt Collection Practices Act for attempting to collect a debt that had previously been settled with another agency, saying that the agency “would not yield” to the evidence provided by the plaintiff that the debt had been settled.

A copy of the complaint, filed in District Court for the District of Colorado, can be accessed by clicking here.

The plaintiff received a collection letter from the defendant last December, seeking to collect on an unpaid retail credit card account. The plaintiff claimed to have completed a payment arrangement with another agency to repay the debt in question, having made a final payment of $55 in September 2021. The plaintiff disputed the debt, and received a letter from the defendant claiming that the balance on the account was $2,372.25 and that a final payment of $25.26 was made in September 2021, but did not satisfy the balance. The plaintiff claims that bank records and a letter received from the original agency indicate that the debt was paid with a final payment of $55.

The plaintiff disputed the debt three times with the defendant. After receiving the third dispute, the defendant sent a letter to the plaintiff, saying that the settlement with the original agency was broken last September because the final payment of $55 was rejected due to insufficient funds.

The plaintiff subsequently hired an attorney and filed suit, accusing the defendant of violating Sections 1692, 1692e, 1692f, and 1692g(b) of the FDCPA.

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