Lawsuit: Diversified Consultants Unlawfully Demanded Payment on Discharged Debt

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Diversified Consultants, Inc. is on the receiving end of a proposed class action lawsuit that claims it violated the Fair Debt Collection Practices Act (FDCPA) by improperly attempting to collect on a debt that had been discharged in bankruptcy. The plaintiff says his AT&T Mobility debt had been discharged on April 28, 2017, meaning he was no longer required to pay it. Nevertheless, the defendant allegedly sent him a collection letter on May 4, 2017 demanding payment on the debt. Even after the plaintiff’s attorney sent AT&T Mobility a letter requesting that it cease collection of the debt, the plaintiff received yet another collection letter from the defendant, the complaint says.

According to the lawsuit, the FDCPA prohibits debt collectors from “demanding payment on a debt that is no longer owed” and from failing to cease communications with a consumer after it receives notification that he or she refuses to pay the alleged debt. From the complaint:

“Defendant’s violations of the FDCPA were material because Defendant’s continued collection communications to [the plaintiff], after he had received his bankruptcy discharge, made [him] believe that his exercise of his rights through filing bankruptcy may have been futile and that he did not have the right to a fresh start that Congress had granted him under the FDCPA and the Bankruptcy Code.”