CMRE Financial Services Hit with FDCPA Class Action

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A class action filed in New York against CMRE Financial Services, Inc. claims the debt collection company ran afoul of the Fair Debt Collection Practices Act by asking in a collection letter that the debtor dispute his alleged debt in writing, something the FDCPA does not require. Under the FDCPA, a debt collector must include language in its communication with a debtor that unless he or she disputes the validity of the debt with 30 days of receipt of the collection notice, the debt will be assumed to be valid by the collector. The FDCPA at no time requires the disputation of a debt to be in writing. According to the lawsuit, it is illegal to include any language in a debt collection letter that overshadows the regulations put forth by the FDCPA that may pose as confusion or deceptive to the unsophisticated consumer.