Class Action: Two Debt Collectors Misstated Consumer’s Rights in Collection Notice

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A proposed class action out of New Jersey federal court accuses Diversified Consultants Inc. and Absolute Resolutions Investments, LLC of deceiving a consumer by misstating his debt dispute and validation rights.

Diversified Consultants sent the plaintiff a letter in July 2018 on behalf of Absolute Resolutions Investments, the case says. The notice, which the lawsuit notes concerned a debt incurred to WebBank, allegedly stated, in part:

“Unless you notify this office within 30 days of receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid.”

The suit argues the letter failed to advise the man of the proper method to exercise his rights in that it did not state a dispute must be made in writing. More specifically, the case argues that the letter’s use of “if” in its dispute instructions implies that the writing requirement is voluntary.