Class Action Says Mullooly, Jeffrey, Rooney & Flynn Violated FDCPA

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Debt collection firm Mullooly, Jeffrey, Rooney & Flynn LLP has been hit with a class action claiming the company breached provisions of the Fair Debt Collection Practices Act (FDCPA) in its communications with consumers. The plaintiff claims the defendant sent a debt collection letter that deceptively noted that the forgiveness of the debt amount may need to be reported to the IRS even though there are exceptions in the FDCPA in which debt settlements are not required to be reported. According to the lawsuit, it is illegal to inject IRS reporting language into a debt collection letter when there is no legal requirement to do so. Such an action, the lawsuit alleges, amounts to an intimidation tactic that could scare the unsophisticated consumer into thinking they need to deal with the IRS and pay tax on a debt when that is not the case.