Lawsuit Criticizes Online Collections’ Alleged Written Dispute Requirement

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A proposed class action has been filed against Online Information Services Inc. (which does business as Online Collections) over an allegedly misleading collection letter the defendant sent to a New York consumer. The plaintiff says the letter he received, dated April 4, 2018, contained the following statement:

“Unless you notify this office in writing 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 the Fair Debt Collection Practices Act (FDCPA) doesn’t require consumers to submit written disputes. In fact, the suit alleges, “it is a violation of the FDCPA to require disputes be made in writing.” Since federal law also allows for consumers to submit disputes over the phone, the lawsuit continues, the defendant’s demand for a written dispute would likely mislead the least sophisticated consumer into thinking he or she had no other option.