J.C. Christensen & Associates, LVNV Funding Hit with FDCPA Lawsuit

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A New Jersey woman claims in a proposed class action lawsuit that defendants J.C. Christensen & Associates, Inc. and LVNV Funding LLC sent her a collection notice that erroneously claimed the forgiveness of her debt would need to be reported to the Internal Revenue Service. Although the Fair Debt Collection Practices Act (FDCPA) places no obligation with debt collectors such as the defendants to provide insight into any potential tax ramifications, when any agency does so in a collection notice it must be done in a way that will not mislead the consumer.

The lawsuit argues the defendants’ language regarding the possible need to report the forgiveness of the plaintiff’s debt to the IRS violates the FDCPA because it amounts to erroneous and incomplete tax information. The truth that was not shared with the plaintiff, the complaint argues, is that according to IRS regulations, a creditor is not required to report the forgiveness of a debt greater than $600 if that amount contains interest.