Debt Collector Sued Over 'Threatening' and 'Misleading' Collection Letter

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Commercial Research & Recovery, Inc. is being sued for allegedly abusive and unlawful debt collection practices. LAGO Funding Corp. contracted the services of the defendant to collect a debt from the plaintiff, the complaint says. According to the lawsuit, the plaintiff received a "threatening and harassing" collection letter from Commercial Research & Recovery that "serves to scare [the] plaintiff into making immediate payment." The letter discussed in the lawsuit allegedly included threats of property liens and wage garnishment if the plaintiff failed to make a payment.

The lawsuit says the defendant’s notice stated, in part:

“This is the FINAL NOTICE you will receive before our client takes further action against you for your failure to honor your agreement with them. If our client decides to proceed with litigation, it means additional costs, interests, and fees to you.

“If judgement is obtained, a lien will be placed upon any real property now or in the future, your wages could be subject to garnishment, you could be set for deposition, or have personal property levied by the Sheriff Department. Additionally, the term of the judgment could be extended pass [sic] twenty (20) years, with legal proceedings continuing during the entire term.”

The case argues the above language serves only to “coerce” the plaintiff into paying immediately to avoid any possible legal action. Further, the suit claims the defendant misled the plaintiff into believing the above-stated actions could be imposed against her at any time.

The threats made within the letter were false and unlawful, the lawsuit says, as the Fair Debt Collection Practices Act (FDCPA) stipulates that it is illegal for debt collectors to use false or deceptive methods in retrieving payments. The case calls for compensation for anyone in Florida who received similar letters from the defendant anytime between one year before this action was filed and 21 days after.