Financial Recoveries Facing Lawsuit After Allegedly Failing to Provide Proper Debt Dispute Instructions

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A proposed class action alleges that Financial Recoveries Limited sent a New Jersey consumer a debt collection letter that failed to disclose that debt disputes must be made in writing.

According to the complaint, the collection notice the consumer received from the defendant in December 2017 stated, in part: 

“Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt, or any portion thereof, this office will assume this debt is valid.”

The case argues that this notice was not in line with the requirements of the Fair Debt Collection Practices Act, as it failed to properly inform the consumer of how to effectively dispute the debt.

“In this Circuit,” the case argues, “a dispute of a debt, to be effective, must be made in writing.”