Class Action: Holloway Credit Solutions Misrepresented Debt Dispute Rights

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Holloway Credit Solutions, LLC is on the receiving end of a proposed class action claiming the company violated the Fair Debt Collection Practices Act (FDCPA) by sending a letter to a Florida consumer that misrepresented her debt dispute rights.

The suit takes issue with the following statement in the July 2018 letter:

"Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume the debt is valid. The Third Circuit Court of Appeals has determined that any dispute to a debt collector must be made in writing."

The case argues that the letter’s reference to Third Circuit law confused the plaintiff and that the statement that disputes must be written is “false, deceptive and misleading.” Further, the complaint claims the defendant’s requirement that disputes be made in writing was not in line with the FDCPA’s debt dispute provisions.

“Pursuant to various sections of the FDCPA, including 1692e and 1692g, a consumer has a right to dispute a debt over the phone,” the suit reads.