Debt Collection Complaint Filed Against Selip & Stylianou, LLP

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A proposed class action out of New York claims defendant Selip & Stylianou, LLP violated the Fair Debt Collection Practices Act (FDCPA) in collection notices sent to consumers. The case claims the defendant sent the plaintiff a collection notice deceptively stating forgiveness of a debt for less than the balance owed may need to be reported to the IRS. The plaintiff argues this statement is misleading and false under the FDCPA because, per IRS regulations, the discharge of a debt that is interest, and not principal, does not need to be reported.

“The said language injects the Internal Revenue Service where there is no legal requirement or other obligation to do so,” the lawsuit reads, adding the inclusion of this language was an alleged attempt by Selip & Stylianou to intimidate the plaintiff.