Merchants Association Collection Division Sued Over Alleged Demand for Written Debt Disputes

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Merchants Association Collection Division, Inc. is facing a proposed class action lawsuit over a collection letter that supposedly misinformed a consumer regarding her right to dispute an alleged debt. The letter allegedly instructed the woman to “send payment and correspondence to” a physical address, which, according to the lawsuit, implies that any disputes must be submitted in writing. Contrary to this representation, the suit argues, the Fair Debt Collection Practices Act (FDCPA) also allows consumers to dispute their debts over the phone, meaning the defendant’s implied demand for written disputes contradicts federal law.

“It is a violation of the FDCPA to include language in the letter that, when examined from the perspective of the least sophisticated consumer, leads the least sophisticated consumer to believe that her dispute must be made in writing,” the complaint states.