Increasing Lawsuits Alleging Abuse By Debt Collectors
by Takara Alexis

Consumer lawsuits alleging abuse by debt collectors continue to increase. Usually these claims of collector abuse are premised on the assertion that a debt collector is seeking to collect an invalid amount or collect from the wrong person. While debt collector abuse of a consumer is not tolerated, such claims - like any claim asserted in court - must be verified by the consumer.

A Federal District Court recently agreed with several previous courts in ruling that a consumer cannot assert Fair Debt Collection Practices Act (FDCPA) claims alleging collection on an invalid debt if the consumer fails to previously disclose the dispute. Recent ruling declares that consumer has to dispute debt before bringing FDCPA action.

In the case of Carpenter v. RJM Acquisitions, LLC, the Federal Judge held that a consumer could not maintain an FDCPA lawsuit premised on a previously undisclosed dispute involving a debt. In its ruling, the court agreed with the holding of the 8th Circuit Court of Appeals in Richmond v. Higgins and granted the debt collector's motion to dismiss, writing: A consumer cannot circumvent the statute's procedural device to dispute the validity of a debt by filing an action pursuant to 1692e on the sole basis that the debt is invalid.

When faced with sparse or conclusory allegations in an FDCPA complaint, a motion for judgment on the Pleadings allows the debt collector a limited opportunity to interpose an answer and possibly other information for consideration by the court early in the case without having to partake in lengthy and costly discovery.

The rulings in Richmond v. Higgins and Carpenter affirm a consumer's duty to disclose a dispute regarding a debt before repairing to Court to seek FDCPA damages. Further, the Carpenter case demonstrates the ability of a debt collector to obtain an early dismissal of an FDCPA lawsuit where it is premised on conclusory or unsubstantiated allegations.

Every situation is different and needs to be reviewed by a licensed attorney to decide the appropriate application of the law to any particular fact scenario. If you have a legal question, consult with an attorney.

Rapid Recovery Solution is a national and international commercial collection agency specializing in all commercial and consumer debts. No debt amount is too big or too small! RRS is an attorney based agency that doesn't get paid unless you collect! Contact them today for any questions you may have and don't forget to request your FREE QUOTE!!!