Class Action Says CBHV Sent Deceptive Letter to Consumer

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Collection Bureau of the Hudson Valley, Inc. (also known as CBHV) is on the receiving end of a proposed class action that alleges the debt collector sent a deceptive letter to a New York consumer.

The case claims that in November 2017, the plaintiff received a letter from CBHV in connection with a debt purportedly owed to Optimum that the man had disputed. The lawsuit says the letter was labeled as a “Notice of Intent” and stated:

“Our records indicate there is still a balance on this past due account. Please respond to this letter within seven days or we may take additional collection efforts. The creditor shown above has authorized us to submit this account to the nationwide credit reporting agencies. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfill the terms of your credit obligations.”

The case charges that the defendant aimed to “trick” the recipient into claiming the obligation and admitting liability by implying that the only way to avoid negative credit reporting is to make a payment. Further, the suit alleges the letter was presented as a collection notice but failed to provide lawful disclosures regarding the plaintiff’s right to dispute the debt or request validation.

Moreover, the case takes issue with the defendant’s “style of mailing” in that the letter was sent in an envelope that appeared to be “about a sweepstakes or some sort of advertainment.” According to the suit, the envelope was misleadingly marked with the phrase “Auto-Express Letter^TM” despite the defendant not holding a trademark on the phrase and the listed address on the letter allegedly belonged to a third party. The case claims these deceptions misled the consumer as to the nature of the communication.