Escallate Hit with NY Consumers’ FDCPA Lawsuit

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Escallate, LLC is on the receiving end of a proposed class action lawsuit that alleges violations of the Fair Debt Collection Practices Act (FDCPA). The plaintiffs in the case, who are residents of New York, claim they received collection letters from the defendant indicating that the debt collector may report negative information on their credit reports unless they dispute their debts within a 30-day period. The suit argues that the letter overshadowed the consumers’ right to request the name and address of their original creditors, which the suit claims would also prevent the defendant’s negative credit reporting. According to the complaint, Escallate’s letters were misleading and would lead the least sophisticated consumer into believing his or her request for validation would not stop the defendant’s collection activities, causing him or her to “forego [his or her] validation rights for fear of a negative credit report.”