A proposed class action lawsuit has been filed against the Law Offices of Ira T. Nevel, LLC over potential federal debt collection law infractions. The case claims the defendant sent the plaintiff a collection letter on November 8, 2017, regarding an accelerated mortgage loan on which the man purportedly owed $219,642.24. According to the complaint, the letter warned that the plaintiff’s amount of debt “may vary from day to day” due to added interest, late charges, and “other charges.”
The case argues that “[a]t no time did [the plaintiff] seek reinstatement of the note and mortgage at issue, nor did he reinstate the note and mortgage at issue.” Therefore, the suit attests, the man’s loan was not subject to interest or other charges and would never increase as the letter suggested.
"[The defendant's] threat of late charges in the letter is false," the suit reads, "as late charges cannot be imposed where the loan has been accelerated and no reinstatement is in effect."
The lawsuit takes further issue with the defendant’s supposed failure to properly communicate the plaintiff’s right to dispute the debt, as well as the debt collector’s own legal requirements in the event of a dispute. In particular, the case claims the letter neglected to explain that the defendant would be forced to halt its debt collection activities, including any litigation, if the plaintiff submitted a dispute or requested verification of the debt within 30 days of receiving the initial collection notice. This information is material to the plaintiff, the case notes, because the defendant did file suit against him during the 30-day validation period without informing him of his rights under federal law.