Suit Claims Gatestone & Co. Miscommunicated Consumer’s FDCPA Rights

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Gatestone & Co. International Inc. is on the receiving end of a proposed class action lawsuit alleging it failed to clearly inform a consumer of the protections afforded to her under the Fair Debt Collection Practices Act (FDCPA). The plaintiff claims she received a collection letter from the defendant that contained the following statement:

“If you notify this office in writing within 30 days after receiving this notice, this office will obtain verification of the debt or obtain a copy of a judgment and mail you a copy of such judgment or verification.”

The suit argues that the defendant misstated a required disclosure from the FDCPA obligating it to inform consumers that if they notify the debt collector in writing within 30 days “that the debt, or any portion thereof, is disputed,” the debt collector must send them verification of the debt. According to the complaint, the defendant’s letter failed to specify what the plaintiff should include in her notification to the debt collector – namely, that she is disputing the debt and not simply requesting a payment plan or informing the defendant that she cannot pay.

The case claims the defendant’s letter leaves open the possibility that the plaintiff will believe she is exercising her FDCPA rights without performing what is required to activate those protections.