Seterus Hit with Claims of Multiple FDCPA Violations

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Seterus, Inc. is facing a proposed class action lawsuit that claims it violated several provisions of the Fair Debt Collection Practices Act (FDCPA) and “preyed upon the ignorance of unsophisticated consumers.” The plaintiffs allege that Seterus attempted to collect on an HSBC Bank home loan by sending collection letters to the bank itself. When the plaintiffs requested that the defendant send communications to their home address instead, Seterus allegedly failed to mail them a validation notice informing them of their rights, in violation of the FDCPA.

Furthermore, the suit claims the defendant illegally threatened litigation over a time-barred debt. The debt had been inactive for more than six years, according to the complaint, which means the statute of limitations had expired and the defendants no longer possessed the right to take legal action to collect on the debt. Nevertheless, the plaintiffs say they received letters from Seterus warning them that if they failed to pay their debt within 90 days, the debt collector “may commence legal action” against them. The suit argues that Seterus included the false legal threat in its letters in order to trick consumers into making payments on their debts and renewing their statutes of limitations.

The plaintiffs further claim that the defendant violated the FDCPA by sending communications to their home address after it became aware that they were being represented by an attorney. The FDCPA allegedly requires debt collectors to communicate only with the plaintiffs’ counsel – and not directly with the plaintiffs themselves, if they are being represented.