A proposed class action citing alleged violations of the Fair Debt Collection Practices Act (FDCPA) has been filed against Halsted Financial Services, LLC and National Credit Adjusters, LLC (NCA). The suit was filed in Illinois by a Chicago consumer who claims she received an unlawful collection letter from the defendants regarding a debt purportedly owed to CASHNET.
According to the lawsuit, the debt was owned by NCA, who contracted the collection services of Halsted. The letter allegedly offered the plaintiff settlement options contingent on making a payment by April 26, 2018—less than 30 days after the notice was sent. Under the FDCPA, a consumer has 30 days to dispute the validity of a debt, the suit points out, which must be properly explained to the consumer as part of a disclosure known as the “g-notice.” The suit argues that although the letter contained a proper “g-notice,” the plaintiff’s right to dispute the debt was “overshadowed” by the included settlement options, the deadline for which fell within the 30-day dispute period. From the complaint:
“Requiring payment to accept a settlement plan in the same letter with the ‘G Notice’ is confusing because the least sophisticated consumer would believe she had less than 30 days to receive the discounted settlement offers, which overshadows her right to validate or dispute the debt under the Fair Debt Collection Practices Act.”