Financial Asset Management Systems Facing FDCPA Class Action

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A proposed class action filed in Georgia alleges Financial Asset Management Systems, Inc. violated the Fair Debt Collection Practices Act (FDCPA) by including contradictory validation notices in a collection letter sent to the plaintiff. According to the 20-page complaint, the defendant’s letter included a mandatory validation notice on the first page (informing the plaintiff she could dispute her debt within 30 days), and in the same letter advised the plaintiff that if she wished to dispute her debt she had to submit a request in writing to an entirely different entity. The lawsuit claims the defendant’s alleged actions could cause the least sophisticated consumer to be unsure which actions she should take to dispute her debt, as the company unlawfully noted she could only dispute her deft if her loan was past-due, the balance was incorrect, or if she did not incur the debt. Under the FDCPA, the lawsuit says, there are no such limitations on a consumer’s right to dispute a debt.