On January 19, 2017, a federal judge in Philadelphia denied an attempt by debt collector AllianceOne Receivables Management, Inc. to dismiss the class action complaint filed by Flitter Milz client Milton Medina.
AllianceOne was sued for language in their collection notices that threatened consumers with Internal Revenue Service reporting. The federal district court agreed that the misstatement of IRS reporting might well influence the consumer's decision making. The Court, ruling on a novel issue, also found that the Plaintiff had standing under the U.S. Constitution to sue for the violation. The Court's opinion can be found here.
Whether a debt is owed or not, the collector must comply with consumer protection laws.
If you are receiving notices from collection agencies, it is wise to have them reviewed by a qualified consumer protection attorney. To discuss contact from debt collectors, contact us.