Alleged Statements in Federal Recovery Group Collection Notice Yield Class Action Lawsuit

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Federal Recovery Group, Inc. is the defendant in a proposed class action filed over alleged abuses of the Fair Debt Collection Practices Act (FDCPA). The plaintiff, a New York consumer, claims he received a notice from the defendant in which the company stated:

It would be prudent for you to pay your balance due rather than incur the cost of a lawsuit. In a lawsuit, you will be liable for general damages which include lawsuit costs, attorney fees, and all damages related to your failure to discharge your balance in good faith promises made to Dr. Elkowitz.”

According to the lawsuit, the above language amounts to a false statement from Federal Recovery Group in that the company effectively threatened to take action that “cannot legally be taken” nor is intended to be taken. The statement included in the plaintiff’s notice is merely a deceptive tactic used to attempt to collect a debt, the lawsuit argues.