Our client received a letter from Forster & Garbus, LLP, a debt collection law firm, which did not disclose that interest was continuing to accrue on her account. According to the Second Circuit, the Fair Debt Collection Practices Act (FDCPA) requires debt collectors to disclose on their collection letters either “that the consumer’s balance may increase due to interest and fees”, “that the amount of the debt stated in the letter will increase over time” or “that the holder of the debt will accept payment of the amount set forth in full satisfaction of the debt if payment is made by a specified date.” Since their letter didn’t contain the required disclosure, we filed a FDCPA lawsuit against them.
Forster & Garbus, LLP tried to get our case dismissed. After extensive briefing, on October 20, 2016, Robert L. Arleo, the attorney for Forster & Garbus, LLP, came to Rochester, NY for oral argument on the motion.
On October 26, 2016, the U.S. District Court in the Western District of New York DENIED THEIR MOTION! You can read a copy of the written decision and order here.
Bottom line: score one for the little guy. Debt collectors need to disclose certain information about any accounts which are accruing interest and fees. Have you been receiving letters on interest-bearing accounts?
Contact us today to see if you have a FDCPA claim.