Emergent Servicing Hit with Class Action Over Alleged Failure to Communicate Debt Dispute Rights

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A proposed class action has been filed against Emergent Business Group, Inc. (which does business as Emergent Servicing and New Century Financial Services) that claims the debt collector sent a New Jersey consumer a deceptive collection letter in violation of the Fair Debt Collection Practices Act (FDCPA). The notice allegedly contained the following statement:

Unless you, within thirty days after receipt of this notice, dispute the validity of this debt, or any portion thereof, we will assume this debt is valid.”

The case argues that the statement contained no mention of the FDCPA’s requirement that debt disputes be submitted in writing. Upon reading the letter, the suit alleges, the least sophisticated consumer would be unsure as to his or her dispute rights and “would likely be deceived in a material way.”