Stellar Recovery Accused of FDCPA Violations in Proposed Class Action

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A proposed class action has been filed against Stellar Recovery, Inc., claiming the defendant violated the Fair Debt Collection Practices Act (FDCPA). In a collection notice sent to the plaintiff, Stellar allegedly failed to inform her that all disputes must be submitted in writing, instead urging her to contact them via telephone. The complaint further claims that Stellar’s “certificate of authority” to do business in the state of Wisconsin, stated in the collection letter, is misleading to the unsophisticated consumer. As an allegedly unlicensed debt collector, Stellar is not permitted to engage in certain forms of debt collection that licensed companies may utilize, the suit says. According to the complaint, Stellar’s claimed certificate of authority “mimicks DFI licensing language and gives the reader the impression that Stellar’s relationship with the State allows Stellar to take more intrusive action than using the mail and telephone to collect debts.” The proposed class includes people in Wisconsin who received a collection letter similar to the plaintiff’s on or after March 16, 2017 that was not returned to the post office.