Stellar Collection Services Inc. is on the receiving end of a proposed class action lawsuit filed by a New York woman who claims she received a collection letter from the defendant that failed to comply with the Fair Debt Collection Practices Act (FDCPA). The letter supposedly misstated her rights and neglected to clearly identify the creditor to whom the debt was allegedly owed. According to the suit, the letter contained the following statement:
“If you do not notify us in writing within the 30 day period described above that you dispute the debt, or any portion thereof, or request the name and address of the original creditor, we shall cease collection of the debt, or any disputed portion thereof, until we obtain verification of the debt or a copy of a judgement, or the name and address of the original creditor, and mail to you such verification or judgement, or name and address of the original creditor.”
The suit argues that this statement directly opposes the FDCPA, which states that debt collectors are required to provide the above information only if consumers notify them within 30 days. The statement was misleading and confusing to the plaintiff, who is entitled to be made aware of her rights, the suit claims.
The complaint also argues that Stellar failed to clearly identify the consumer’s creditor by neglecting to indicate whether “Pathology & Laboratory Consultants” was the original creditor, current creditor, or creditor to whom the debt is due.