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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.
A collection operation is facing a Fair Debt Collection Practices Act and Fair Credit Reporting Act class-action lawsuit for allegedly engaging in debt parking and then failing to reasonably investigate the plaintiff’s dispute, mostly because the defendant refused to remove the item from the plaintiff’s credit report.
The Background: At some point in 2023, the plaintiff obtained a copy of his credit report, which contained an item that listed the defendant attempting to collect a debt for $538 that the plaintiff allegedly owed. The defendant reported the debt originated with Arizona Public Service, a utilities provider. The issue? The plaintiff has lived in the same house in Ohio for the past 35 years, according to the complaint.
- The plaintiff claims he did not receive any notification from the defendant about the debt prior to it being reported to the credit bureaus, which is a requirement under Regulation F. Collectors must either speak with the consumer by phone in person or send an email or letter and then wait at least 14 days to make sure the message isn’t returned, prior to furnishing information about a debt with the credit bureaus.
- After learning of the debt, the plaintiff disputed it with the credit bureaus. The bureaus probably forwarded the dispute to the defendant, as they are required to do, and the defendant purportedly advised the credit bureaus that the debt was accurate and belonged to the plaintiff.
The Claims: The plaintiff, along with other members of the class, is accusing the defendant of violating Sections 1692f and 1692f of the FDCPA and Section 1682s-2(b) of the FCRA.
- The complaint seeks to include anyone in the United States for whom the defendant reported a consumer debt to a credit bureau without first communicating with the consumer about the debt.
