Seven Defendants Named in FDCPA Class Action Lawsuit

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A proposed 85-page class action filed in California claims the below corporate defendants, as well as three individual defendants, violated the Fair Debt Collection Practices Act (FDCPA):

The lawsuit attacks a pattern of wrongful conduct in which the defendants allegedly filed “hundreds, if not thousands,” of Verified Complaints for Possession of Real Property in California Superior Court. These complaints allegedly contain affirmatively false information with respect to proposed class members’ protected rights as consumers.

“These misrepresentations are intended to mislead,” the lawsuit claims, “and/or have the effect of misleading [proposed class members of their] rights in violation of applicable provisions of the Federal Fair Debt Collection Practices Act … and the U.S. Dept. of Housing and Urban Development.”

Citing an “extensive investigation” conducted by the named plaintiffs, the lawsuit claims attorneys for defendant Parkmerced, despite having “easily discernible facts to the contrary,” have filed and continue to file Housing Branch Department complaints that “falsely characterize” proposed class members. In addition to these complaints, the defendants also allegedly filed federally subsidized housing vouchers seeking eviction and repossession and sought to “avoid disclosure of special defenses” that must come into play in litigation involving claims to evict a resident of subsidized housing.

The lawsuit takes particular issue with Parkmerced’s alleged practice of having security guards ride around on Segway Hoverboards to issue unsigned dunning notices written on Parkmerced’s tenant attorney’s letterhead. These notices are allegedly placed inside a plastic sleeve and placed onto tenants’ door knobs, a practice the complaint alleges is an FDCPA violation.

Defendant American Utility Management, the case notes, handles collecting consumers’ debts on behalf of Parkmerced.